Purpose and benefits

Outsourcing has become critically important to many organisations due to the strategic implications.
Many organisations have not achieved the desired benefits from outsourcing.
Typical problems associated with outsourcing include no formal outsourcing process, limited cost analysis, and core business definition.
Outsourcing should be carried out from a strategic perspective and integrated into the overall strategy of the organisation.
Definitions of the core and non-core activities of the business must be linked with corporate strategy.
Supply management is a crucial element in ensuring effective management of the outsourcing process.