The strategic need to reduce Total Cost of Ownership (TCO), gain access to professionally managed IT services and leverage on advancements in technology are predominantly driving the IT-intensive firms towards Facilities Management Outsourcing. IT infrastructure management services including software development, application hosting, network management, web hosting, maintenance, data management, desktop upgrades, help desk support etc., alongwith IT-enabled services like bill presentment, DTP and imaging are the services being popularly outsourced. Three major abstract models viz., personnel, function and project are generally practiced in IT outsourcing, while the operational and delivery models are determined based on different factors such as type and nature of the services outsourced, operational and technical constraints involved, scope of IT services required, and number of service providers. Significant trends in IT outsourcing include practices such as Build, Operate and Transfer (BOT), transformation outsourcing, multi-vendor outsourcing etc.

Information Technology (IT) has become the backbone of the businesses worldwide with the need to digitize business processes and functions. However, the realization that it was considered as a non-core activity by many, gave birth to the practice of IT Facilities Management Outsourcing (ITO). This article introduces the concept of ITO and throws light on its emergence. In the process, various areas of ITO are explored and the business drivers influencing the growth of outsourcing IT services are highlighted. While offering a cursory view of the global IT outsourcing practices, this article highlights various models of IT outsourcing, associated risks and challenges, as well as the emerging trends.

With the advent of computing resources and advancements in Information and Communication Technologies (ICT) at a rapid pace, organizations across the world are witnessing a true revolution in areas of information management, process automation, information processing and communication at a level which was never seen before. Through a wide range of best-of-breed applications, the adoption of IT in businesses across enterprises has grown by leaps and bounds. As part of an enterprise automation strategy, efforts were consistently made to automate business functions and processes by leveraging on different evolving technologies from time-to-time. The early efforts for automation were focused on automating manufacturing operations through the use of mechanical technologies. Similarly, managing information across enterprise was done through conventional ways involving heavy paper work and chaotic processes. Later, managing information, automating functional processes, improving performance and minimizing risk across the enterprise was made easier when organizations started embracing information technology through the use of related software tools in different areas of business management.

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