Outsourcing is the act of delegating or subcontracting a process such as product manufacturing, provision of a certain service to a third party that is mainly a similar company in the industry. In the IT industry-related services are outsourced through delegating another company that is usually more experienced in providing such service on behalf of the Outsourcing Company (Terms and Definitions, n.d). Outsourcing in IT industry Many of the most successful organizations have adopted outsourcing practices in their operations and in the IT industry is not an exception. The IT and Business Process outsourcing industry is experiencing rapid growth, with outsourcing leading the trend there is a lot of efficiency within the organizations as resources such as financial inputs, human resources among others are minimized. Outsourcing is becoming a core component of companies’ corporate strategy The scope is expanding beyond traditional transaction processing to Specialised Skills where some companies are using outsourcing as a means to position themselves for long-term capability building (both skills and capacity).Thus outsourcing has become a competitive necessity. The new frontier is to integrate process and IT operations to improve effectiveness and efficiency (Offordile, 2002). According to Offordile (2002), there are various benefits associated with Outsourcing in IT industry. They include: To counteract Stiff Competition in the Market: Outsourcing enables firms to stand a better position on top of competitors since their services will be effective and efficient as delegated experts in such line of service providers provide them. This is because the service provided is usually of the best quality as experts in that field provide it with minimum resources. Taking Advantage of First Class Workers in Low-Cost Firms: Since most of the outsourced firms are experts in such fields, their service is exemplary of first-class high quality. Firms that may be marginalized due to competition may take the advantage of outsourcing to remain in the field especially if they lack the capability to train their personnel. Reduction of Risks With companies outsourcing their services, uncertainties of low-quality service to clients are greatly eliminated, as the companies outsourcing such services does so to the most competent firm. Also it has been noted that the service provider and not the outsourcing company solely incur other risks that might be brought about by artificial or natural causes. Minimal Capital Expenditure For example, by outsourcing information technology requirements, a company does not have to buy expensive hardware and software or incur costs in training and hiring personnel. Such expenditures will be diverted to other projects in the company. Few management difficulties For instance, by outsourcing business processes such as Internet provision, a company no longer has to hire and manage the relevant personnel. If the firm outsources, it’s the duty of the service provider to manage and mobile all the required resources in order to give the outsourcing firm the required output. Main Focus is on Core Competencies Outsourcing non-core-related processes will allow a business to focus more on its core competencies and strengths, giving it a competitive advantage. For instance it doesn’t require training and be paying personnel whose job may be accomplished only in a few days on a monthly b