The history of outsourcing goes as far back as the time when individuals started to organize groups, small communities and societies. Lack of some skills and knowledge resulted in labor division, and inability to produce things needed to survive single-handedly urged people to trade with other regions and countries. These are considered to be early forms of outsourcing.

Outsourcing as a business strategy emerged only in 1989. Before that time manufacturing companies did not look for outside assistance but performed all production stages in-house. However, over time manufacturers realized better opportunities of productivity when having work done out-house.

With the Industrial Revolution, the situation entirely changed. Economic growth and increasing competition forced companies to think of using third-party resources to perform functions for which they had no competency in-house.  At that time, outsourcing companies were mostly located within countryside. Further periods in the history of outsourcing connected with the outsourcing of manufacturing low-tech and later high-tech items.

Today it is hardly possible to find any activity not being outsourced.  So as to bring about enhanced results, companies are constantly on the look out for more opportunities to cut down on costs and focus on core business competencies. And outsourcing appears to be the best answer to the issue. Moreover, according to the latest research, outsourcing is a growing trend that is not likely to go down.