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by Bojan Zrnic

Outsourcing in IT is a thing of history!

It all started when some intelligent capitalists realized they could get work done for less money and that they didn’t need to hire anybody or offer any benefits.


Pioneers in outsourcing are companies from the USA which were the first to hire companies from India for outsourcing technical support as well as some other similar jobs that could be done remotely via phone.


As technology advances, so do outsourcing possibilities. That’s why today, instead of a phone, a person working remotely can use a variety of tools to work as if they are sitting in the office next to you.


Why is outsourcing so popular?


If you have read the paragraph above carefully, you probably aren’t able to see any differences between outsourcing and a regular B2B type of work, so the main question is: why is outsourcing so popular? The main difference between these two types of work and the reason that pushed companies into outsourcing is the lower price of labor.


The price is lower than hiring someone to work with you at the same office, and it is worth having the issues caused due to cultural differences, remote location, time zones, or other issues.


For example, there is no need to include employee benefits since you did not employ anybody and it all adds up nicely.


Since it all started, the IT industry has grown a lot. Actually, most of the outsourcing today is done in the IT industry, but some other things have changed too. The demand for software development services has been on the rise for quite some time now, but the number of IT engineers is not enough to fulfill this demand.


You don't need to be an expert to know that if you have a lot of work and not enough workers, the work price will increase.


If we go back to the definition of outsourcing, we can see that nothing fits in anymore - there are no software engineers without a job and prices are higher and higher.


The situation we are facing right now -  companies cannot find senior or more experienced engineers so they are forced to cooperate with other companies worldwide.


All these facts give us only one conclusion - there is no more outsourcing in IT because the price is not determined by the programmer's location but by experience and quality of work.