Outsourcing creates competitive advantage by managing the organization's non core functions to enable the organization to concentrate on its core business. Outsourcing has become the new concept in the business world that strengthens the competitiveness, improves the economic growth and increases performance of the organization. The large companies of United States and Western countries have realized the importance of outsourcing in sustaining the growth in the competitive world. In the global economy, the concept of outsourcing has been changed from solving problems to transforming the IT functions of the organization. The transformational function of the outsourcing has influenced the management strategy of the organization
Outsourcing improves the competitive advantage of the company in the global market. Benefits of outsourcing for the customers are:
The IT outsourcing has the twin advantage of cost savings due to wage difference combined with high-quality skills. IT outsourcing can be classified into IT services, Infrastructure outsourcing and IT enabled services. The areas of IT services are application development, testing and maintenance services. The areas of IT infrastructure outsourcing are desktop support, server management, database system management and backup services. The areas of IT enabled services are customer care, product support, transcription and data entry.