Saturday, August 11, 2007

Why outsource people prefer Greatoutsource.com

The Process of Outsourcing Great Outsource

The decision to outsource is taken at a strategic level and normally requires board approval. 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.

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Outsourcing involves the transfer of the management and/or day-to-day execution of an entire business function to an external service provider.[1] The client organization and the supplier enter into a contractual agreement that defines the transferred services. 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.

Outsourcing and offshoring are used interchangeably in public discourse despite important technical differences. Outsourcing involves contracting with a supplier, this may or may not involve some degree of offshoring. Offshoring is the transfer of an organizational function to another country, regardless of whether the work is outsourced or stays within the same corporation[2]. With the globalisation of outsourcing companies the distinction between outsourcing and offshoring will become less clear over-time. This is evident in the increasing presence of Indian outsourcing companies in the US and UK. The globalisation of outsourcing operating models has resulted in new terms such as nearshoring and rightshoring that reflect the changing mix of locations


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