The "Outsourcing Chronology" chart traces the evolution of outsourcing from its earliest roots to the present day, highlighting how companies have leveraged less expensive labor to cut costs. Starting with domestic subcontracting in the pre-1950s, it charts the shift to international labor markets—like Japan and Mexico in the 1960s—and the rise of IT outsourcing in the 1970s and 1980s, when banks began relying on U.S. vendors for data processing.
The chart also captures the explosion of global outsourcing in the 1990s, fueled by the H-1B visa program and offshoring to countries like India, where wages were a fraction of U.S. rates.
Each row details key periods, industries, and labor cost dynamics, showing how outsourcing grew from a niche strategy into a dominant corporate practice. It also notes the limited role of visa programs in early decades, contrasted with their later significance in importing cheaper IT talent.
This timeline underscores a recurring theme: the pursuit of lower labor costs has shaped outsourcing’s trajectory, often at the expense of U.S. citizen workers—this trend continues to spark debate and calls for reform today.