In a simple sense, "IT outsourcing" means giving some IT development and management tasks to somebody outside the company to fulfill that task. In such a relationship, the company should be prepared to define their IT needs to an outside supplier. "IT outsourcing" may also mean hiring someone to operate your IT department. Such a partner must have people who can work closely with your staff to understand your unique business problems so that you can deliver, implement, and service unique solutions.
In offshore outsourcing engagements, the provider generally belongs to foreign countries like India where highly skilled English speaking software specialists are available at very inexpensive rates.