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Offshoring/outsourcing

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The big picture

This model can be used to decide whether organisational activities could and should be outsourced or offshored. Outsourcing is the delegation of non-core operations to an external source that is specialised in the management of that operation. Offshoring is comparable to outsourcing, but in this case the business process – such as production, manufacturing or services – is moved to another country. This decision-making model helps to determine whether it is wise to offshore or not (Figure 20.1).

When to use it

Companies usually choose to outsource or offshore parts of their business for one or more ...

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