The software industry expanded in the early 1960s, almost immediately after computers were first sold in mass-produced quantities. Universities, government, and business customers created a demand for software. Many of these programs were written in-house by full-time staff programmers. Some were distributed freely between users of a particular machine for no charge. Others were done on a commercial basis, and other firms such as Computer Sciences Corporation (founded in 1959) started to grow. Other influential or typical software companies begun in the early 1960s included Advanced Computer Techniques, Automatic Data Processing, Applied Data Research, and Informatics General.The computer/hardware makers started bundling operating systems, systems software and programming environments with their machines.
Outsourcing has become an integral part of business operations and the reasons are not far to seek. This is a popular business practice nowadays, especially with organizations in information technology. It makes sense to outsource solid business software development for countries that have a considerable amount of talent in this area and to perform services at a much lower rate. It has become routine for companies in the United States and other developed countries to outsource their software services for the least developed countries, which are not only well-trained staff, but also of adequate infrastructure.
The software industry has been subject to a high degree of consolidation over the past couple of decades. From 1988 to 2010, 41,136 mergers and acquisitions have been announced with a total known value of US$1,451 billion ($1.45 trillion). The highest number and value of deals was set in 2000 during the high times of the dot-com bubble with 6,757 transactions valued at $447 billion. In 2010, 1,628 deals were announced valued at $49 billion.
Although it is a fact that the development of software outsourcing offers tremendous advantages for large companies, it is a system that can also benefit small businesses. Though there were apprehensions first quality based on the differences in culture, working conditions and attitude, they were resolved with supervision and collaboration. Google, Microsoft, SAP and Intel are some giants that are actively pursuing a global development policy of outsourcing for their own benefit and that of their corporate employees. The same benefits also benefit small businesses that outsource their software development that size does not matter as much as the cost savings and infrastructure.