Outsourcing is not simply a way of cutting costs, it is now a business model in itself, according to one expert.

Writing for Mlive.com, business commentator Rick Haglund said many companies now base their entire business plan around the delegation of functions to external service providers.

He credits the advent of the internet for opening up new options for companies, enabling specialist IT firms to improve their technology capabilities.

Mr Haglund noted that major IT firms such as Apple rely on outsourcing to keep their costs low and maximise productivity, working more effectively by specialising in their areas of expertise.

He explained: “Apple has about 25,000 employees in the United States. But another 250,000 workers employed by a contractor in China assemble Apple’s products there.”

Writing for Fresh Business Thinking, industry commentator Claire West recently claimed that 20 per cent of all companies have now embraced IT outsourcing.