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The History of Outsourcing

It is important to dig out the history while moving forward on a path, the study will certainly bring up some valuable insights which may drive us to take decisions in the future.

We all know outsourcing started with IT business, it took off in the 90s when companies started focusing on cost saving measures. The outsourcing business started on the following grounds

Can also be called as Advantages

  • Lack of specialized team to perform certain task meaning no internal competency
  • Avail Cost benefits in the form of cheap labor


  • Accept what the vendor provides you, is there a way to validate if the deliverables have passed certain quality check. The answer is no.

Crowd Sourcing- Looking back into the past again

  • Crowd sourcing is fairly a new concept but it existed since 1714 when British government offered £20,000 to solve The Longitude Problem and John Harrison the son of a Carpenter solved it by creating a accurate timepiece can used to determine longitude
  • In 1936 Toyota held a Logo Contest, They received 27,000 entries and the winning logo was the three Japanese katakana letters for "Toyoda" in a circle, which was later modified by Risaburo Toyoda to "Toyota".
  • The Sydney opera house is the result of a contest floated by Joseph Cahill, 233 entries were received from 32 countries around the world.
  • Between 2000 to 2006 wikipedia & Youtube got formed.
  • In 2006 Jeff Howe coins the term crowdsourcing in Wired Magazine article in June 2006.

collaboration is the key to success

From Individual contributor to Team Contributor - Earlier in the late 90s in a typical web development company we used to find one person taking requirements, further analyzing them and creating a visual mockups and then converting the mockups into HTMLs, also he/she used to be SPOC for any issues with the website.

But things changed and the IT industry started believing that a collaborative effort is the key to success, rather putting the responsibility on ones shoulder and make him slog for 10-12 hours a day it is better to have specialized teams to do a particular set of activity.