IT outsourcing became more widespread as more and more businesses began looking for ways to cut costs. Many businesses considered IT – internet technology – to be outside their core competency, which eased the decision to let someone else do it. What does the IT outsourcing landscape look like today?

According to News.com, the top three IT outsourcing companies in the world are IBM, EDS, and Computer Sciences Corp., all U.S. based companies with operations and service centers all over the world.

Leading Outsourcing Countries

India is still the country of choice for many businesses outsourcing their IT operations. CIO.com reports a tenfold growth in India’s IT outsourcing industry over the past 10 years. And even though its share of the industry is decreasing because of increased competition from countries like China and Russia, India’s outsourcing industry continues to grow.

Some of the same issues still linger, high turnover rates and culture barriers can make work difficult.

As wages increase in India, many companies are looking toward other less-expensive countries for software development and maintenance. Brazil is one of them. Another benefit of doing business in South America is location. It’s close to the U.S. both in terms of geography and in time. Even the larger outsourcing firms are moving to Brazil. IBM has its infrastructure hub in a city outside Sao Paolo. (more…)