Comprehensive Outsourcing Agreement
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FAQ
An outsourcing agreement is a contract formed between a company and a service provider wherein the provider promises to deliver specified services. An example would be data processing from a service provider that utilizes its own staff and equipment, typically working from their own location as well.
Outsourcing is an arrangement under which an organisation contracts with a service provider to perform services that the organisation currently performs in-house or which are performed by an existing third party supplier.
Services being perishable can't be stored (inventorised) Service is time and place dependent. Production of services can't be separated from consumption. Customers are part of production. Lack of Standardisation. Service can't be touched like goods.
Some common outsourcing activities include: human resource management, facilities management, supply chain management, accounting, customer support and service, marketing, computer aided design, research, design, content writing, engineering, diagnostic services, and legal documentation.
Local outsourcing (choosing a company in your own country); Offshore outsourcing (finding a team somewhere in Asia, for example, in India); Nearshore outsourcing (a company in a country that is not far from yours, like in Eastern Europe, if you are located in Western Europe).
Professional outsourcing. IT outsourcing. Manufacturing outsourcing. Project outsourcing. Process outsourcing. Operational outsourcing.
Time-and-materials contracts, which bill the project at an agreed-upon rate based on actual resources used and time spent by developers. Fixed-price contracts, which bill the project at a flat rate, regardless of the time spent or resources used.