Outsourcing

• What is outsourcing?

  Delegating one or more business processes to an external provider, who then owns, manages and administers the selected processes to an agreed standard
• What are the benefits of outsourcing?

  • Access specialist suppliers with greater capabilities and higher quality
  • Reduce costs if outsourcing supplier is able to provide at lower cost
  • Focuses the business on its core activities
• What are the drawbacks of outsourcing?

  • Risk that outsouring supplier will fail to meet quality standards
  • Potential loss of expertise from the business
  • No guarantee that costs will be lower