Outsourcing

• The transfer of activities which were previously conducted in house to a third party outside of the business
• Getting another company to do something for you
• Advantages

  • quick responses to change in demand
  • specialists can be used for certain things
  • non-standard orders can be outsourced - you get the money and none of the hassle
• Disadvantages

  • no control over quality and can affect reputation
  • can lose touch with the project
  • can end up being more expensive
  • may have to share information which could lead to issues