According to some, outsourcing is the transfer or delegation to an external service provider the operation and day-to-day management of a business process (www.theoutsourcezone.com/what.htm). Companies are increasingly outsourcing the management of information technology (IT) for reasons that include concern for cost and quality, lagging IT performance, supplier pressure, access to special technical and application skills, and other financial factors. The growing complication of IT and the difficulty of finding and retaining trained IT staff play a great part in why people are using IT outsourcing (Business Process Outsourcing).
             The outsourcing solution is acceptable to large and small firms alike because strategic alliances are now more common (Hoffman, B.A., J.D., 2000). The IT environment is rapidly changing, which can become an extremely complex and complicated process if not handled correctly. Outsourcing can be an immense benefit to businesses that choose to properly use its functionality.
             In the beginning, during the 1980's, the United States found itself in big economic trouble. To counter this threat, the US Government raised interest rates to almost 20% to slow economic growth, directly causing a recession. The value of the US dollar was very low, so foreign countries were buying up large amounts of American stocks and Government bonds. Those that were hurt most early on by this mishap were the American auto makers (A Brief History of Outsourcing, 2003).
             With no other choice but to save money during hard times, GM took the first step towards outsourcing. The auto maker made the decision to shut down 10 factories in the Michigan area and re-opened then in Mexico, where labor prices were much cheaper (A Brief History of Outsourcing, 2003).
             Once other companies found out about this, a chain reaction ensued. American businesses began moving branches to other countries because they all saw one thin...