History and Origin
Body shopping in IT originated during 1996-1999 where there was huge demand for people with Mainframe, COBOL and related technology skills to prevent systems being affected by the Y2K bug.
Most specialist Y2K consulting companies operated in US, Europe, Middle East, Japan & Australia outsourced their manpower requirements to technology companies operating in India, which are now global forerunners in offshore and outsourcing.
During 1996-97, these companies responded to the heavy demand by recruiting and training local graduates in India specifically for Y2K. Their consultants either worked onshore or offshore at high utilization rate generating huge profit margins. The high profit margin during this period resulted in fast growth and sufficient assets to expand operations to other IT related business segments post-Y2K. Even in the modern IT age of offshoring and outsourcing, it is widely accepted that Indian IT companies growth strategy still continue to focus on similar lines, which is, developing skills for a changing marketplace and catering skills demand of their global customers by Body shopping.
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