Outsourcing information

What is outsourcing

Outsourcing means the transfer of an entire business function to an external company. A contractual agreement is signed and transferred services are defined by it. Under the agreement the supplier acquires the means of production in the form of a transfer of people, assets and other resources from the client. The client agrees to procure the services from the supplier for the term of the contract. Business segments typically outsourced include information technology, human resources, facilities and real estate management, and accounting. Many companies also outsource customer support and call center functions, manufacturing and engineering.

Why outsource?

The decision to outsource is taken at a strategic level in the company. Outsourcing is the divestiture of a business function involving the transfer of people and the sale of assets to the Supplier. The process begins with the Client identifying what is to be outsourced and building a business case to justify the decision. Only once a high level business case has been established for the scope of services will a search begin to choose an outsourcing partner.

Where to find outsourcing services?

Finding a reliable outsourcing firm is not always as easy. Its always good to search for some references before contracting an outsourcer. Simple Google search can give you unexpected results.

Links and sources

Wikipedia
DMOZ outsourcing category
Outsourcing Directory

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