Outsourcing & Contracting

Posted June 30th, 2007
in

Definition: (Webopedia)
Contracting out a company's non core, nonrevenue-producing activities to specialists.

Why Outsource?

Dont have time
Would rather focus on
          core-competency
Lack of skills
Cheaper with same quality
  • Differing from contracting in its use as a strategic management tool.
  • Helps an orgaization to restructure around what it does best - its core competencies.
  • Two common types of outsourcing: Information Technology (IT) outsourcing and Business Process Outsourcing (BPO).
  • BPO includes outsourcing related to accounting, HR, benefits, payroll, and finance functions and activities.