The essential motivation for business software is to increase profits by cutting costs or speeding the productive cycle. In the earliest days of white-collar business automation, large mainframe computers were used to tackle the most tedious jobs, like bank cheque clearing and factory accounting. Factory accounting software was among the most popular of early business software tools, and included the automation of General Ledgers, Fixed Assets Inventory ledgers, Cost Accounting ledgers, Accounts Receivable ledgers, and Accounts Payable ledgers (including Payroll, Life Insurance, Health Insurance, Federal and State Insurance and Retirement) ledgers. The early use of software to replace manual white-collar labor was extremely profitable, and caused a radical shift in white-collar labor. One computer might easily replace 100 white-collar 'pencil pushers', and the computer would not require any Health or Retirement Benefits. Building on these early successes with IBM, Hewlett-Packard and other early suppliers of business software solutions, corporate consumers demanded business software to replace the old-fashioned drafting board. CAD-CAM software (or computer-aided drafting for computer-aided manufacturing) arrived in the early 1980s. Also, project management software was so valued in the early 1980s that it might cost as much as $500,000 per copy (although such software typically had far fewer capabilities than modern project management software such as Microsoft Project, which one might purchase today for under $500 per copy.) In the early days, perhaps the most noticeable, widespread change in business software was the Word Processor. Because of its rapid rise, the ubiquitous IBM typewriter suddenly vanished in the 1980s as millions of companies worldwide shifted to the use of Word Perfect business software, and later, Microsoft Word software. Another vastly popular software program for business were mathematical spreadsheet program such as Lotus 1-2-3, and later Microsoft Excel. In the 1990s business shifted massively towards globalism with the appearance of SAP software which coordinates a supply-chain of vendors, potentially worldwide, for the most efficient, streamlined operation of factory manufacture. Yet nothing in the history of business software has had the global impact of the Internet, with its Email and Websites that now serve commercial interests worldwide. Globalism in business fully arrived when the Internet became a household word.

Outsourcing gained prominence as a business strategy in the early/mid 1980's and was originally driven by the desire to reduce costs in labor-intensive business processes. The benefits of this labor arbitrage are still possible, but in the most recent five years companies are increasingly seeking innovation, flexibility and scalability in their business operations through outsourcing. Outsourcing relationship management appeared as a specific management discipline in 1999 after an industry consortium, the Sourcing Interests Group, began developing guidelines for its member companies. Following this introduction, the theories of outsourcing relationship management have been developed by numerous global industry groups, universities, consulting/advisory firms and software companies. The term is in wide usage today and the practice of outsourcing relationship management is becoming increasingly important to companies that are using external service providers as part of their organizational strategy.Most major outsourcing initiatives are driven by top management. It's not unusual for a CEO to be directly involved in the early stages of the process. One often unexpected demand of implementing an outsourcing strategy is the requirement for new management techniques and specialized skills among the client-side management team. Over the last five years or so, this need has become more generally known but companies are still struggling to address the requirements adequately. For example, a 2002 Computerworld article[4] documents the need for managers skilled in ORM for managing IT outsourcing. A more recent article in DM Review points out that there is still a need for specialized outsourcing relationship managers and cites this as a career opportunity. University researchers are also studying the requirements and developing models and methodologies around this phenomenon. For example, Carnegie Mellon University has developed a detailed Sourcing Capability Model to measure the maturity and skills required for effective outsourcing relationship management. The University of Michigan sponsors research and events focused on the challenges and management strategies for successful outsourcing. Recent trends in outsourcing strategies find clients adopting a "multi-sourcing" strategy in order to better leverage and scale the outsourcing operations and find more specialized service providers. In early 2007, a CIO Magazine article[8] explores this trend.