Background

IT Outsourcing actually commenced in the late 1980's. CIO's such as Kathleen Hudson at Kodak helped capture public attention by making outsourcing a viable and serious business strategy. Her goal was to "plug into the wall and have data come out." The business has grown to such an extent that a recent McKinsey report revealed that out of a potential US$300 billion business, offshore outsourcing providers have only captured 10% of the growth. Research and consulting organizations such as McKinsey predicts that IT services will be offshored in greater numbers. (1)

Indeed, many financial institutions and IT organizations have taken to outsourcing their IT work offshore. Their requirements include straightforward tactical support, such as software testing and application development, to more strategic support, such as the establishment of an Offshore Development Center (ODC) which encompasses a variety of service offerings.