Outsourcing has been a business practice for centuries, but it wasn’t until the 1980s that it gained significant traction.
The reason for this is that advances in technology and globalization made it easier than ever before to outsource certain tasks and processes to companies and individuals in other countries.
One of the main drivers of outsourcing in the 1980s was the desire by companies to reduce costs. By outsourcing jobs to countries with lower labor costs, companies were able to save money on wages and benefits. This allowed them to focus on their core business activities and compete more effectively in the global marketplace.
Another factor that contributed to the rise of outsourcing was the increasing availability of technology that made it easier to communicate and collaborate with people around the world. The development of fax machines, telephones, email, and other forms of communication technology allowed companies to work more efficiently with their outsourcing partners, regardless of where they were located.
Globalization also played a significant role in the growth of outsourcing. With the increasing interconnectedness of the world economy, it became easier for companies to find qualified workers and suppliers from other countries. This opened up new opportunities for businesses to expand their operations and tap into new markets.
Overall, the 1980s were a pivotal moment in the history of outsourcing. The combination of cost-cutting measures, technological advancements, and globalization allowed companies to outsource more effectively than ever before. This trend has continued to this day, with more and more companies turning to outsourcing as a way to improve their operations and compete in an increasingly competitive business environment.