Information technology outsourcing started the whole outsourcing trend. IT enables the consolidation, sequencing, aggregation, rapid processing and multiple distribution of transactional information. The hardware and software “infrastructures” for IT processing need careful management. Specialty software needs design, coding, testing, implementation and maintenance. Service providers in IT outsourcing (“ITO”) manage these functions for their enterprise customers.
ITO differs substantially from BPO. For ITO, the processes are implemented technologically. For BPO, manpower is added to machine power for process implementation. Both ITO and BPO depend upon cheap, high-speed global telecommunications.
ITO can support BPO and help transform the enterprise through reassembling and redirecting information, personal relationships, supply chains and financial incentives.
ITO services range from the maintenance of hardware, software, security appliances, storage devices, telecommunications and specialty technology services.