ABSTRACT
Many businesses are starting to take a long, hard look at their own systems, processes, and structures as an alternative route to increased profitability and market share. They are spurred on by waves of additional regulations, demanding significant improvements in transparency and reporting standards, improvements that can be achieved through greater operational efficiency and clarity. Organizations seeking cost reduction or the ability to handle capacity fluctuations often use outsourcing by leveraging from their vendors’ abilities. The aim is to achieve maximum integration with the firm’s internal processes and systems and to cause minimal disruption. Global outsourcing may involve delegation and segregation of responsibilities. Staff may assist in tasks like ensuring correct specifications. The specifications may be technical or nontechnical. A good deal of accuracy may be required so that specifications are precise. All costs need to be properly estimated so that an inflated budget is avoided and the benefits of a global contract are reaped.
