IT Outsourcing Companies in the USA

History of Outsourcing in the USA

In 1980, the United States was suffering through a period of stagflation that included slow economic growth, high inflation, and high unemployment.

In the 90’s, the USA companies were forced to outsource their jobs to overseas in order to return to profitability due to the following reasons:

As the result of outsourcing for many years, the USA local business market has low domestic manufacturing, little innovation, and high unemployment. More and more companies want to hire 10 engineers in a developing country rather than one engineer in the U.S. with the same cost.

Reverse Outsourcing

Reverse outsourcing is when foreign companies hire the USA workers. The USA companies outsource their jobs to other countries (especially the developing countries) to cut their budget. But every company, no matter where it is, is always looking for great employees who can do jobs better, faster, and cheaper.

IT outsourcing industry follows the reverse outsourcing policy as well. Normally, the USA companies outsource their IT jobs to the countries in the Far East, especially India, China, Philippines, etc. India is the largest IT outsourcing country across the world, however, India began to outsource their jobs back to the USA in the last several years. Why? Indian IT companies gave the following factors:

You may be surprised, but ‘Yes’, Indian IT companies is hiring American employees locally. Now, more and more India IT companies move their business to the USA and hire the local employees. Definitely, reverse outsourcing, this new business outsourcing model will impact or even changed the traditional outsourcing model.

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