It’s a very broad question involving many potential variables but organisations use IT outsourcing services because it is directly or indirectly more cost efficient than directly employing for the same functions. The direct cost paid to an outsourcing partner to provide nearshore and offshore IT specialists can often be lower than employing domestically for the equivalent skills. Indirect cost efficiencies include avoiding recruitment agency fees or the expense of in-house recruitment, the need to set up and manage international payroll, and the flexibility to scale IT resources up and down with project cycles.