Outsourcing in broad terms is a transfer of some business functions or components of business processes to an outside contractor. To remain competitive, many companies outsource as a way to reduce costs, increase efficiencies, and refocus critical resources. Many organizations have their own IT departments catering to their software and other IT enabled services needs; while others go for IT Outsourcing. According to one estimate from IDC, total global outsourcing services spending are expected to reach US$151 billion by 2003. When it comes to IT Outsourcing, the U.S. market for IT Outsourcing will grow at a rate of 22% annually, reaching an unprecedented US$110 billion by 2003, according to market researcher INPUT.

It is also forecasted that the Business Process Outsourcing (BPO) segment of total IT Outsourcing will lead the way, with a 29% annual growth rate, jumping from US$7.4 billion in 1998 to a projected US$26.5 billion in 2003. The Internet/intranet management portion of this will rocket 76% annually through 2003, largely due to e-business and e-commerce spending. Let’s see the basis attributes to this phenomenal success of IT Outsourcing. First, shifting of spending from Y2K fixes to other IT Outsourcing services supporting e-business/e-commerce. Second, revived interest in thin-client configurations, based on Internet appliances and e-commerce demands, and this is slowing the long-term trend toward distributed IT infrastructures.

We understand that clashing trends always cost money. On the horizon, the impending, large-scale adoption of Internet-enabled, wireless devices of all types will boost demand for networking upgrades, new ERP customization, and expanded desktop services outsourcing that includes this new technology and eventually IT Outsourcing. Because ‘Internet rates of speed' infect rates of technology change within the IT industry as a whole, clients are increasingly reluctant to undertake independent, in-house migrations to upgraded architectures and applications.

IT Outsourcing (to be precise BPO outsourcing) is typically the catalyst driving corporate "re-engineering" initiatives to streamline processes, reduce costs, and focus on business strengths. Other times, BPO is merely the "byproduct" of these re-engineering efforts. We know, although, banking, discrete manufacturing, and insurance have traditionally led U.S. IT Outsourcing, and the fastest-growing sectors in the next few years will be the telecom and utilities industries. Hence the future prospects for IT Outsourcing seem to be very bright in the coming years!

Outsourcing in broad terms is a transfer of some business functions or components of business processes to an outside contractor. To remain competitive, many companies outsource as a way to reduce costs, increase efficiencies, and refocus critical resources. Many organizations have their own IT departments catering to their software and other IT enabled services needs; while others go for IT Outsourcing. According to one estimate from IDC, total global outsourcing services spending are expected to reach US$151 billion by 2003. When it comes to IT Outsourcing, the U.S. market for IT Outsourcing will grow at a rate of 22% annually, reaching an unprecedented US$110 billion by 2003, according to market researcher INPUT.

It is also forecasted that the Business Process Outsourcing (BPO) segment of total IT Outsourcing will lead the way, with a 29% annual growth rate, jumping from US$7.4 billion in 1998 to a projected US$26.5 billion in 2003. The Internet/intranet management portion of this will rocket 76% annually through 2003, largely due to e-business and e-commerce spending. Let’s see the basis attributes to this phenomenal success of IT Outsourcing. First, shifting of spending from Y2K fixes to other IT Outsourcing services supporting e-business/e-commerce. Second, revived interest in thin-client configurations, based on Internet appliances and e-commerce demands, and this is slowing the long-term trend toward distributed IT infrastructures.

We understand that clashing trends always cost money. On the horizon, the impending, large-scale adoption of Internet-enabled, wireless devices of all types will boost demand for networking upgrades, new ERP customization, and expanded desktop services outsourcing that includes this new technology and eventually IT Outsourcing. Because ‘Internet rates of speed' infect rates of technology change within the IT industry as a whole, clients are increasingly reluctant to undertake independent, in-house migrations to upgraded architectures and applications.

IT Outsourcing (to be precise BPO outsourcing) is typically the catalyst driving corporate "re-engineering" initiatives to streamline processes, reduce costs, and focus on business strengths. Other times, BPO is merely the "byproduct" of these re-engineering efforts. We know, although, banking, discrete manufacturing, and insurance have traditionally led U.S. IT Outsourcing, and the fastest-growing sectors in the next few years will be the telecom and utilities industries. Hence the future prospects for IT Outsourcing seem to be very bright in the coming years!