Outsourcing basically means the delegation of tasks or jobs from a company to some external entity. Most recently, it has come to mean the elimination of native staff to staff overseas, where salaries are markedly lower.

It became popular as business buzzword since 1990's, from there after it has slowly got transformed to business process outsourcing where whole business processes are outsourced, especially in the software development and IT sector, which account for the highest number of figures in outsourcing of jobs.

The popular destinations are of course India and China for all those companies that keep on hunting for a vendor that could give them cheapest yet best of the results. IM, Hewlett Packward and Novell are some examples of such companies. Smaller business also takes advantage of freelancing on the internet to get similar projects done by offshore developers at minimum costs.

Such large amount of heavy outsourcing of jobs to offshore destinations has become possible by the invention of high-speed communication links that allows engineers and managers to communicate on real time basis. For an offshore company, you can monitor the software development process and project milestones on an up-to-the minute basis.

A side effect of this practice is now visible. It has lead to domestic unemployment of thousands of high-tech professionals, many of whom were just passed outs and have joined these institutions looking at the boom in the IT industry.

Though outsourcing has proved beneficial for many companies, it has been also looked up as a ruinous decision for others. In this mixed kind of reaction, while few companies complained of being delivered for services they never asked for, or with very poor quality work than what they expected, while others showed their great satisfaction in what their offshore clients have provide them with.

Reaction by some US customers has also been negative. Many customers have complained of an inability to effectively communicate with their support staff, which they outsourced to India, because of their heavy Indian accents.

Software projects are inherently complex, risky and require careful planning. With the greed of earning more profits, many companies have stepped out of their nations to opt for the cheaper highly skilled labor. While many of them have found satisfaction with the quality work they found here, the others have moved back to their nations or to their other destinations searching for the client that can come up to their expectations. But in all this, the jobs that have moved out have created unemployment and hence slowing down of
the economic growth in our own country. The domestic workers feel pressure and depression for their jobs being moved out by their employers.

Thus it can be thought of a situation where in the wish to earn more, we are calling those times where unemployment and economic recession is on growth with in our own country due to our self-created factors.