ABSTRACT
If certain activity including product or service is sourced from outside, then it is termed as ‘outsourcing’. Basics of outsourcing have been discussed including cost as well as non-cost factors. Associated costs while insourcing and outsourcing have been compared to take a suitable decision. Cases are mentioned considering steel tube production and L.P.G. cylinder manufacturing industry. Outsourcing relationship between buyer and supplier is described specifically including factors influencing it. Service operations are also provided such as after sales service along with its effect among others. Outsourcing management needs immediate attention in order to enhance the probability of success while outsourcing. Important aspects pertaining to this are narrated taking suitable example.
