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Outsourcing can be defined as, "subcontracting a process, such as product design or manufacturing, to a third-party company. Outsourcing became part of the business lexicon during the 1980s.
Outsourcing can be defined as, "subcontracting a process, such as product design or manufacturing, to a third-party company. Outsourcing became part of the business lexicon during the 1980s. The decision to outsource is often made in the interest of lowering firm costs, redirecting or conserving energy directed at the competencies of a particular business, or to make more efficient use of labor, capital, technology and resources" (Wikipedia, 2008). Significant cost savings, cost restructuring, an improvement in overall quality, access to a greater pool of knowledge, the existence of a legally binding contract, operational expertise that would otherwise be too expensive, the solving of staffing issues such as a small and dependable internal talent pool, improved capacity management, providing a catalyst for major change, reducing the time it takes for a product to reach market, commoditization, improved risk management techniques, the ability to operate 24/7 because of various time zones, and the pressure that is being placed on a company by customers which may only be solved through outsourcing (Wikipedia, 2008).Provided that the best ethical practices are taken into consideration and implemented, it is not agreed that standard financial investment information is all that is needed to effectively evaluate IT outsourcing definitions (Department of Defense, 1997). ...