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What is Off-Shore Outsourcing or “Offshoring”

Encyclopedia of Information Science and Technology, Second Edition
Outsourcing that is provided across national borders. In most cases this involves sourcing services from a low-salary nation like India, China, or parts of the former Soviet Union, where “salary arbitrage” (definition follows) leads to reduced costs.
Published in Chapter:
Information Technology Outsourcing
Anne C. Rouse (Deakin University, Australia)
DOI: 10.4018/978-1-60566-026-4.ch319
Abstract
Organizations have used external vendors to supply information technology (IT) functions since the first commercial implementations. In the sixties, the use of facilities management, contract programmers, and contract project management were common, but during the 70s, many organizations relied increasingly on internal delivery of IT services. The term “outsourcing” arose in the late 80s. Since that time industry has seen a fundamental change in the way information technology (IT) services are organized and delivered, with increasing reliance on external, outsourced providers. Managing outsourced IT service delivery has now become a core competence for organizations.
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