IT outsourcing.

Information technology outsourcing is said to have originated with Kodak-IBM outsourcing of 1989. However, software development, data processing activities and support and maintenance were outsourced during 1970s. Cheap labor is one of the main factor to lure companies for outsourcing as the salaries of the IT workers elsewhere is much more less than in the United States.
The offshore outsourcing of information technology has attracted many companies in the United States since the last decade. In this complex business world, most companies are concerned with operation costs, and are ready to do whatsoever to decrease the cost of production or services. Most companies and researchers believe that outsourcing IT would help them to reduce costs in their operation system. It might be true in the short run, but in the long run, offshore outsourcing of IT will have a negative impact in the American industry. IT mostly consists highly skilled staffs and have to offer higher salaries. Because of the technological complexity and higher salaries, many organizations outsource IT services elsewhere, as it can bring higher return on investment. The company may maximize their profit due to the cheap labor overseas in compare to the higher salaries for the IT staffs in the U.S.