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Outsourcing

What is outsourcing?
Outsourcing is a strategic decision of a company to use an outside organization to perform work that is typically done within that company. This strict definition of the term covers only activities that were once internal to the company and includes only the process of moving the activity to the outside. Most companies involved in outsourcing, however, use a much broader definition. In this sense, the term can be defined as using a third party to service a particular product or using a technology provider to move into new delivery channels and markets. Outsourcing also includes managing the relationship between the buyer with its provider, or outsourcer, because nothing is more likely to lead to an unsuccessful venture than neglecting a partner (Lanz & Barr, 2000, p.1).
Like traditional selection process, the outsourcing process includes all the steps of planning, selecting, and managing the service providers. In comparison with purchasing or contracting out, o...

Posted by: Justin Rech

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