Outsourcing company

Outsourcing could be stated as a procedure in which there is usually subcontracting to a third party company. The System is basically accepted to reduce the cost and make the best out of the available resources, technology and capital.

The purpose of outsourcing is to increase employment in a developing country and improving the living standards of the working class. But the IT operations in the past few years have suffered due to the whole idea of outsourcing. There have even been instances like McDonald's drive through windows speakers and order boxes being manned by individuals that are not even in that building or for that matter in the same country. Many of the infomercials have tele calls to be attended to and these are handled by outsourcing to India. Strong grounding in the English language makes it cost effective. However, one cannot deny the fact that outsourcing is important and more of a helpful tool.

Strategic level decision followed by approval from the board is required for carrying out outsourcing techniques. Decisions are processed with a make-buy analysis.

Referred to as RFP it takes place through bidding. The innovative ideas and the creativity of the suppliers may be used to judge their proposals.

Response of the suppliers and the requirements of the clients are analyzed and down selection is carried out which involves selection of suppliers until a few remain.

Documentation and the prices are finalized and agreement is drawn between the supplier and the client.

A legal document is drawn on how the client and the supplier will work. Commencement date and the date of signing the document are the important criteria to be noted