Introduction This report contains in-depth research on the advantages and disadvantages of offshore outsourcing of information technology (IT). The recovering American economy and the globalization of business, with pressures on both the top and the bottom line, is forcing organizations to look at various ways and to find new ways to reduce costs. Since the early nineties it has become clear that IT can offer greater competitive advantages to companies. Figure 1) Strategic Outsourcing (www.corbettassociates.com) Offshore outsourcing was started by Fortune 500 companies in various sectors such as securities, banking, insurance, retail, manufacturing, utilities, energy, transportation, and technology (www.compnetworking.about.com). For these major companies offshore outsourcing of some small IT departments was started as a mere cost cutting concept and to keep tight control over the IT budgets and projects. However this concept has gradually moved ahead and now it has been established as a successful business model not only as cost effective but also offering high efficie......

Word Count: 2947
Page Count: 11.7 (250 words a page / double spaced)

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