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IT outsourcing is a business transaction which involves contracting or selling an organization's IT assets, people and activities to a third party supplier. Several different forms of outsourcing include systems development outsourcing, business process outsourcing, offshoring, service provision and more recently, utility computing. However, the motivations for outsourcing remain largely the same and have traditionally centered on cost reduction although the advantages of outsourcing in terms of access to scarce expertise, faster time to market, and higher quality products and services, are now also being recognized as key drivers.
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