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.
Well defined processes with clear documentation
Strong measurable SLA (Service Level Agreement) design with penalties on both sides.