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Adam Smith, in the ‘The Wealth of Nations'
Adam Smith, in the ‘The Wealth of Nations', formulates a theory of competitive advantage, extracting the notion of outsourcing as a way to cut costs by hiring cheaper labor in less developed countries. -
Indian Manufacturers
England's textile industry is so efficient that eventually Indian manufacturers can't compete, and work is outsourced to England. -
Outsource tasks involve massive info
It becomes common to outsource tasks that involve massive amounts of information, such as data processing, to external vendors, due to the large costs and physical storage requirements associated with computers. -
“Galactic Network”
JCR Licklider of MIT publishes a paper discussing his “Galactic Network” concept. He envisions a globally interconnected set of computers through which everyone can quickly access data and programmes from any site. -
Payrolls
It is common for computer companies to export their payrolls to outside service providers for processing. -
Outsourcing enters the business lexicon
Outsourcing enters the business lexicon. Accounting services, payroll, billing, and word processing all became outsourced. -
Outsourcing is formally identified as a business strategy.
Outsourcing is formally identified as a business strategy. -
Shift to outsourcing mainframe
Shift to outsourcing mainframes, PCs, and telecommunications. Outsourcing becomes very profitable with the advent of the WWW. -
cost-saving measures
As organisations begin to focus more on cost-saving measures, they start to outsource those functions necessary to run a company but not related specifically to the core business. -
decreasing?
The first web server is launched in November helping the outsourcing grow a bit -
Information Servers
Wide Area Information Servers (WAIS) are invented by Brewster Kahle, released by Thinking Machines Corporation. WAIS is a distributed text-searching system that searches index databases on remote computers. -
A growing industry
Outsourcing is a $100 billion per year industry. -
Still growing
Outsourcing accumulates $298.5 billion in global revenues -
Debates
Outsourcing is one of the topics of debate between the candidates in the United States presidential election. -
Where it is headed
a professional services firm based in India and founded in 1999, takes this approach a step further and actually does deals based on guarantees of business results. HCL recognized that customers are impressed when a vendor accepts and manages risk, so it created six different service offerings that involve taking on some of the risk based on the investment the customer is making.
