Day: February 23, 2016
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Costs of Outsourcing
Contract management costs Loss of knowledge Costs if outsourcing relationship has problems Cost of any tender process Possible security problems
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Benefits of Outsourcing
Enables management to focus on core business Cost benefits from the economies of scale provided by the outsourcer Helps manage peaks and troughs of workloads Access to specialist skills Access to the outsource’s knowledge Helps manage risk
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Outsourcing
When an organisation has another organisation carry out some of its work activities to an agreed level in return for payment. Examples include services such as catering, cleaning and security. In I.T. outsourcing has being growing since 1970s and since 2000 there has been a growth in business processes being outsourced too.