The history of enterprise outsourcing has roots dating back to the late 18th and 19th centuries, coinciding with the onset of the Industrial Revolution. During this era, businesses commenced the practice of entrusting specific aspects of their production to external manufacturers. This early form of outsourcing arose from the collaboration of specialized craftsmen and those lacking the requisite skills, all in exchange for compensation.
The inception of IT outsourcing, although not pinpointed to an exact date, is widely acknowledged to have taken root in the 1980s. Historical records indicate that the first significant IT outsourcing agreement occurred between Eastman Kodak and IBM in 1989. In this pivotal arrangement, Eastman Kodak enlisted IBM to conceive, construct, and manage a data center on its behalf. This milestone marked a transformative shift in the landscape of IT services.
Fast-forward to today, and the global IT services outsourcing market has experienced exponential growth. In 2022, it reached a staggering valuation of USD 525 billion, with projections estimating it will soar to approximately USD 1,149.24 billion by 2032 (source).
In light of these statistics, outsourcing becomes an attractive avenue for businesses seeking cost-efficient and timely solutions while enabling them to stay focused on their core competencies and innovations. It serves as a strategic lifeline for organizations looking to avert the pitfalls that beset large IT projects.
Our whitepaper, “Your Checklist for Selecting IT Outsourcing Vendor,” is your roadmap to avoiding the costly mistakes and setbacks that plague in-house IT projects. Download the full whitepaper today to gain a competitive edge and ensure a successful IT outsourcing partnership that propels your business forward.