According to a poll taken worldwide, the IT companies come in the first position defeating every other type of business in outsourcing. Also many reports in the Computer weekly magazine state that outsourcing increases at the rate of 5.9 percent per annum in IT companies and is still increasing. This is the scenario in each and every IT company and not just in some definite one. This has left many youngsters who are thinking of pursuing a career in this field wondering what exactly the reasons behind outsourcing are and also that does it happen frequently. Hence this article gives all kinds of information necessary for everyone to understand the true nature of outsourcing that goes on in big and famous IT companies as well as small-time IT companies.

1. The expenditure: On the basis of a survey study on IT companies, it is a fact that an average IT manager earns around fifty thousand dollars per year. However it cannot be guaranteed that all of this huge amount of money will be paid to the managers. There are innumerable factors to be considered while deciding on the salary of the manager or for the same reason, any other post. The recruitment expanding trade, additional advantages of the company and other updates require a lot of money and this money is deduced from the staff member’s salary. Many IT companies go into loss as they fall short of funds and are unable to recover them back even by outsourcing majority of their staff.
2. Lack of training experts: The IT managers who recruit new people for their company do so; on the basis of their graduation marks and other extra factors. However all of the new recruits need to be trained efficiently in the tricks and trade of the Information technology business. It is definitely not an easy job as the pay is quite high. The small-time IT companies do not get adequate jobs and as a result the profit received is very less. That is why staff members are no paid their bonuses or sometimes even salary on time. After some time they are fired from their jobs as the company needs to save money in order to run smoothly.
3. Improper usage of IT companies: If a company does not seek help from an IT company, it may save some amount of money on a yearly basis but lose much more on the other hand. IT Companies help the companies by preparing different programs and systems which in turn makes it easier for the financial section of the company to run their faculty without too many complications. This was not noticed by many big and global companies until a few handfuls of years ago. That is why though the IT sector was blooming in full force, only the big IT sectors flourished and the rest of them went into losses which ultimately resulted into outsourcing.