Outsourcing can be defined as “the strategic use of outside resources to perform activities traditionally handled by internal staff and resources.” ( Source: by: Rob Handfield, SCRC, Jun, 01, 2006 ). Outsourcing is a strategy by which an organization contracts out major functions to specialized and efficient service providers, who ultimately become valued business partners. And in some cases, outsourcing involves the transfer of employees from the company to the outsourcing company. Two organizations may enter into a contractual agreement involving an exchange of services, expertise, and payments.

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