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The history of IT outsourcing

It is no longer a secret to anyone that we live in an interconnected world, from one side of the globe to the other. Software development companies have created computer systems that not only simplified our work and daily life but also put us to the test, most of the times, our teamwork and collaboration. We should never underestimate the ability of the human to adapt to change and to adopt the latest improvements in the technological field.

Some time ago, humanity came to an essential conclusion - collaboration is one of the essential conditions in making work more efficient. Because of this, a new industry - outsourcing - has developed side by side with businesses. All domains have proven to be largely outsourced over time, but one of the most important is IT. That's how IT outsourcing started. In the following, we will give a more detailed insight into the past, present and future of IT outsourcing.

How did it all begin?

The IT industry has proved an inclination towards outsourcing since the early 1970s. At first, the tasks transferred to other companies were simple. However, things began to take shape around the 1980s, through a famous collaboration between Eastman Kodak and IBM, thus making a huge step in the history of IT outsourcing. IBM has taken on important tasks, carrying out both the design and a data center, especially produced and adapted to Kodak's needs. With significant business growth, Kodak has decided to transfer more and more tasks to partner companies.

Throughout history, many companies have begun to adopt the collaboration model between Kodak and IBM, and in the 1990s, due to the expansion of the Internet, they adopted offshore outsourcing - a collaboration between distant countries. The beginning of the 21st century brought with it an increasing number of companies offering IT outsourcing services, both offshore and nearshore, on various levels of complexity. Since this market has reached a substantial dimension, companies had the opportunity to choose the partner that properly fits their needs.

Where are we today?

Nowadays, a large part of the business’ activity is transferred to IT outsourcing companies. The IT outsourcing market has become bg. Companies in the IT sector choose to focus on the main activity, and the other functions, however essential for the business, are outsourced. It is charming that we are not talking about IT outsourcing as an innovation of the '70s, but as a constant innovation. Being under constant change and adaptation to the needs of companies, IT outsourcing is always devoted to the latest technologies and software development trends.

What does the future hold for us?

Regarding the future of IT outsourcing, it is already a clear one - especially, analyzing the previous results to date. We are already in the era of technology, digital information and artificial intelligence; therefore, more and more spheres of activity will be digitalized. Although digitalization looks like a simple process at first glance, it holds teams of experienced software developers behind it who put a lot of effort into performing these tasks. The future of digitalization and the IT industry is very much about outsourcing, which is directly responsible for the accelerated and high-quality evolution of the technology sector.

IT outsourcing with AROBS

We, at AROBS, support the major potential of IT outsourcing, by building teams of experts in software development and by focusing on the most suitable business solutions, tailored to the needs of our partners. Our IT outsourcing activity starts in 1998 in Cluj-Napoca, Romania. We have entered in this industry in an early stage, gaining vast experience and a considerable portfolio about software development projects, reaching the top companies in Central and Eastern Europe. Because we believe in quality and performance, we always offer the best services for your business. Even now, in the times of pandemic, our teams are working on projects in 14 countries in 4 continents. We started working from home in the early days of the emergency situation, keeping our productivity at the same level as always. To find out more, visit the AROBS website.

Author: Word Hickson   

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