|
|
|
What is Outsourcing
In a world where IT has become the backbone of businesses worldwide, 'outsourcing' is the process through which one company hands over part of its work to another company, making it responsible for the design and implementation of the business process under strict guidelines regarding requirements and specifications from the outsourcing company. This process is beneficial to both the outsourcing company and the service provider, as it enables the outsourcer to reduce costs and increase quality in non core areas of business and utilize his expertise and competencies to the maximum.
Organizations that outsource their processes are termed as, client or buyer or outsourcer. And those firms that provide outsourced activities are known as service providers or vendors or supplier.
Outsourcing relationships are durable and long-term. They are based on contracts that define the service to be delivered and customize the service to the needs of the user, i.e. the client. The service provider understands the user’s business and is responsible for managing how the service is delivered.
Once the outsourcing decision has been made, the next piece of puzzle is the delivery model. As the global economy emerges, companies are vying for global resources, to meet their business goals. One of the
most popular delivery models now being considered is
offshore outsourcing.
|
|
