6 OUTSOURCING

Jeremy Newton

This chapter outlines some of the basic concepts relevant to business process or technology outsourcing. It also considers some of the common jargon and acronyms that are used in the course of outsourcing transactions.

INTRODUCTION

Outsourcing means different things to different people. Expressions like ‘facilities management’, ‘application service provision’, ‘cloud computing’, ‘offshoring’ and ‘near-shoring’ are also used to describe a range of commercial arrangements, and they are frequently lumped together under the heading ‘outsourcing’. In terms of their subject matter, though, these expressions all mean subtly different things.

A ‘pure’ outsourcing relationship involves two key elements: a transfer of assets ...

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