Final answer:
The concept described is cloud computing, which relates to outsourcing and offshoring. Outsourcing involves hiring contractors for services, while offshoring moves operations to low-cost labor countries. These practices have expanded with the growth of global telecommunications and the international business landscape.
Step-by-step explanation:
The term 'location-independent computing in which shared data centers deliver hosted IT services over the Internet' describes cloud computing. This concept has become integral to modern business practices, where companies can access IT resources on-demand, without owning and maintaining physical infrastructure. The rise of cloud computing is tied to broader trends in outsourcing and offshoring, where businesses contract out services or move operations overseas to benefit from reduced costs and increased efficiency. Outsourcing involves hiring outside contractors to perform tasks like accounting and customer service. Offshoring, meanwhile, refers to relocating operations to countries with cheaper labor markets. Both practices have grown alongside advancements in telecommunications, enabling easier management of long-distance production and sales.
In 2005, the global market for information technology and Business Process Outsourcing (BPO) was already significant, and it has expanded rapidly since. Countries like India and the Philippines have become major centers for outsourcing, especially for IT-related services. Outsourced and offshored services can range from computer-related customer support to complex data processing tasks, impacting job markets and corporate competitiveness internationally.