Network outsourcing 3. Since its introduction in the late 1980s with Eastman Kodak's pioneering deal, IT outsourcing industry has been experiencing dramatic growth. More significantly, growth in the percentage of systems outsourced between 1993 and 1996 ranged from 40 percent to more than 400 percent. It seems to be such an important trend that can't be ignored by IT people. The craving to save money drives companies to outsource their IT operations.
Many companies outsource because they have trouble finding people with adequate technical skills.
For a nontechnical company, it is even more difficult to compete for skills. Another reason that leads to skills shortage is that some companies are hesitating in training staff. Because they are afraid those people with the latest technology will be easily seized by other competitors that will pay two or three times as much. Outsourcing can help IT managers keep focus on their company's business issues. By shifting operations to outsiders, internal IT staffs are freed up to work on more strategic development, such as how to bring products to market faster, how to improve customer service, and how to involve new technologies into products etc.