Outsourcing
The concept has become a watchword for many business leaders and organizational consultants who want to streamline, improve and develop the company and its products. The term can be defined :
The process in which events that make up a function and a history performed internally within the company and with this change, rather than purchased from an external supplier. The fact is that it’s about to buy as the recipient of many outsourcing contracts the buyer’s table, not only to carry out the purchase, but often also for be responsible for feasibility studies, project implementation etc.

Pros and cons with outsourcing

Pros:

■The buyer has minimal responsibility for the outsourced function.
■The buyer doesn’t need to have experience in similar projects.
■The projects will often be easier for buyer.
■The buyer has bigger influence over price, keyfigures and costs.
■Some benefits can give cost-reduction result.
Cons:

■The buyer has limited influence on the price determination and little transparency in the supplier cost structure.
■The buyer has little influence over the personnel, technology and use of materials quality.
■The buyer will be in strong dependence by the supplier;
result in high commercial, technical and delivery risk.