Almost all business entities execute their production orders with the aid of external vendors for various reasons. In the present world where IT is no more treated as just a service but more as a business driver, It is sometimes neccessary to use an external agency to execute meeting a companys goal. With the enormous change and the speed with which the IT scenario is changing many business entities are looking for outsourcing the IT activities too, in a way to be economical and yet be in the forefront of using cutting edge technologies.


The strategic use of outside (i.e. external) service providers to perform non-revenue-generating activities so that an organization may focus on its core competencies.

alternatively Outsourcing is a strategic business decision that facilitates cost containment and provides a knowledge domain to bring innovation and provide competitive advantage.

Key Areas

Well defined processes with clear documentation

Strong measurable SLA (Service Level Agreement) design with penalties on both sides.


  1. Concentration in Core Business
  2. Single Point Service / Solution
  3. No Capital infusion
  4. Best Talent - Global Talent
  5. No more Asset management
  6. Avoid Obsolescence due to refreshment plan
  7. Pull out Global talent in case of Emergency / Disaster
  8. Best Practices are available
  9. Excellent Knowledge transfer
  10. Good remote support

Concerns / Barriers

  1. Technoloy Obsolescence
  2. Unrealistic Internal expectations
  3. See the services providers as technical partners rathar than money making Vendors
  4. Concern over loss of control and dependancy
  5. Lack of Benefit evaluation framework
  6. Concern for security of data and Processes.
  7. Trustworthiness of Service providers
  8. Lack of committment from Service Providers because of preference to higher paying customers.