Outsourcing is a very diverse market, and there are many different outsourcing options and outsourcing service providers to choose from. This part discusses recommendations for companies looking to outsource, and recommendations for outsourcing providers.
company contracts with an outsourcing provider to perform a defined scope of work, and the outsourcing provider charges the company a fee. The fee can take many forms: by the transaction, by labor hour, cost per unit, cost per project, or annual cost. Companies choose to outsource for many reasons. It is common for companies to embark on an outsourcing effort in order to lower costs, improve service, obtain expert skills, improve processes, or improve focus on core activities. Nevertheless, outsourcing