Information Technology Outsourcing (ITO)

Definition

Information technology outsourcing (ITO) is the process of outsourcing information technology services to third-party providers, typically in developing countries with cheap labor costs.

Software development, programming, infrastructure, IT maintenance, and IT support are just a few services companies employ ITO for. In addition, many businesses use ITO to reduce costs significantly.

Moreover, companies often outsource data storage because hiring a third party is less expensive than purchasing and maintaining their own data storage equipment and facilities.