Partners and outsourcing

Abstract

The growing trend since the mid-1990s has been towards the greater use of outsourcing to optimize business operations. This adoption of outsourcing has increased as organizations have looked first to reduce their cost base, divesting non-core activities (which may range from internal facilities management aspects to the complete transfer of manufacturing or product processes). The second driver has been the recognition that global competition and low-cost labour have provided an environment where, through enhanced communications, even customer-facing activities may be relocated economically, with considerable cost advantage.