Source Code China: The New Global Hub of IT (Information Technology) Outsourcing

Chapter 2. Battle of the Titans: The Global Outsourcing Landscape

With the global business process outsourcing (BPO) and IT outsourcing (ITO) markets now multi-billion dollar industries, countless companies and numerous countries are increasingly looking for a slice of the outsourcing pie. Prior to the wide use of the Internet, value-added outsourcing opportunities in more remote locations were limited. Transmission of project material required lengthy faxes, odd-hour conference calls, or daily overnight or express packages carrying floppy disks.

Smaller, more developed countries and territories with well-educated populations see outsourcing as a way to offset their lack of natural resources, and stem the brain drain to more lucrative and cosmopolitan locations.

For large, developing nations, the benefits of building domestic outsourcing industries are manifold. Chief among them is giving local software engineers and other skilled technology workers the opportunity to interact with and learn from their peers internationally.

As we will see, some countries shy away from providing infrastructure for outsourcing because they believe it will interfere with the development of a domestic software industry. However, the capital and experience that support outsourcing often provide a strong boost to countries wanting their own software industry.

An increasing number of countries and territories are attempting to get in on the outsourcing act. The ingredients seem simple enough: tech talent; ...