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Over the last four decades, outsourcing has morphed as business models evolved, technology advanced and competition for resources and expertise expanded.

In its infancy, outsourcing gained market traction in the data center (information technology outsourcing or ITO) focusing on IT cost savings and staff augmentation. This was largely in response to rapid IT infrastructure changes and staff shortages. Organizations were enabled to quickly adopt new technologies and expand business automation and integration capabilities.

During the 1990s, through the Y2K and dot-com frenzies, outsourcing provided resources to meet aggressive organizational plans. At the same time, expanding technology capabilities linked onshore and offshore resources virtually and created networked organizations.

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