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Outsourcing describes the deliberate movement of a series of connected business processes to a third party who manages them on behalf of the company. The classic processes were IT, warehousing and distribution, facilities management and payroll, and to these can now be added: call centres, manufacturing, web development, home shopping, credit cards, and even merchandising and design. In these movements the commercial risk and assets are usually passed to the outsourcing company.

However, not all companies refer to the process of business process management transfer as outsourcing; for some, they are just buying a service or a series of products. In this case the transfer of assets is unl...


Cover of Global Logistics, 7th Edition