What started taking shape in the 1980s turned into a major boom in the early 1990s. But this also ushered in a bad time when the entire IT market collapsed and led to major downsizings and shut down of a lot of small and big companies. Thus thousands of Asians and others working in USA on work permits were forced to leave and get back to their own countries. This made available a lot of highly skilled but unemployed software professionals who returned to their countries like India.

In a last bid attempt to get back out of the IT slump these companies started to think of ways and methods to increase their profits while lowering down the operational costs. All this started with massive scale IT outsourcing to countries like India. Though initially IT outsourcing mainly consisted of only Testing work, later it began to be accepted worldwide that India could not only do the debugging job but also create highly efficient codes and programs and softwares. This new wave of belief brought riches to India through everincreasing IT outsourcing.

IT outsourcing now not only includes testing or development but also maintenance of softwares. A lot of big American companies have outsourced IT services like maintenance and upgradation of softwares to Indian companies. IT outsourcing has several benefits to the companies in the way of increased profit due to lesser price paid. On an average the job done in India costs nearly one-fifth of that in USA. Thus, when the same quality work can be done for a far lesser price, IT outsourcing is unavoidable.

And there are several examples of the benefits of IT outsourcing. By outsourcing a lengthy but easy part of job, you can save a lot of time to spend elsewhere, thus increase your profits and output elsewhere. The faith in the companies at the receiving end of IT outsourcing is displayed by the fact that one of the largest parcel services of the world and one the best F1 racing teams now depend on Indian companies for IT support.

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