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Most companies have no formal outsourcing process and make short-term decisions based on cost-reduction, and risk mitigation, rather than securing added value alongside continuous improvement. In spite of the intense research activities, there are few frameworks depicting the actual stages and the layout of the overall process of outsourcing.
In many cases, companies hire contractors either to have specific types of work done, or to reduce their workload. In this manner, long-term relationships are established with the companies whose capabilities complement or supplement their own.
Outsourcing can be defined as “the strategic use of outside resources to perform activities traditionally handled by internal staff and resources”. According to Griffiths D., “outsourcing is a strategy by which an organisation contracts out major functions to specialized and efficient service providers, who become valued business partners”.
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