NTRODUCTION

Global outsourcing of information technology is a phenomenal business strategy for most countries all over the world, especially the developed. Companies within these states have limited development areas and resources to erect facilities that will maintain all levels of products and services development within the state, hence the aspect of offshore mergers. Various reasons as (Carmel &Nicholson 2005) identifies are as a result of cost reduction strategies due to easy and cheap transit of information and other related products.

Edgell, Meister and Stamp (2008, p. 174) argue that, rise of outsourcing is based on cost benefits since most business operations operate on cutting cost of production to realize mass turnover. More so, the technological advancements that are realized as time progresses enhances the move to collaborate with other companies to offer manpower and skills aligned with corporate policies and standard of quality expected. The approach implemented by management determines the effectiveness of its decisions such that planning the whole initiative inclusive of proper funding and monitoring the business results for success (Willcocks 2010). To realize cost reduction, relationships must be developed and maintained first, since a good business relationship is the root of success for any business client and the partner (Weeks & Feeny 2011); therefore cost instills the urge of outsourcing while relationship development offers a conducive environment for working towards cost reduction and other initiatives to be realized.

India is the major outsourcing destination in Asia (Carmel & Nicholson 2005) which has an advantage over other countries, for its incentives are attractive to cost- effectiveness business strategy with good telecommunications industry enhanced by skills and manpower, as well as technological resources that are