Globalization is ushering in a new era for organizations, where barriers to entry have never been lower. The shift required for organizations to remain competitive in a global market where historical and geographical divisions are becoming increasingly irrelevant, is to look at the components of their operations and develop strategies for how to optimally source labor, materials, and skilled services.
Outsourcing or sub-servicing
The process of contracting to a third-party.
Insourcing
The delegation of operations or jobs from production within a business to an internal (but 'stand-alone') entity that specializes in that operation.
Business Process Outsourcing (BPO)
BPO is a subset of outsourcing that involves the contracting of the operations and responsibilities of specific business functions (or processes) to a third-party service provider.
Knowledge Process Outsourcing (KPO)
KPO is a form of outsourcing, in which knowledge-related and information-related work is carried out by workers in a different company or by a subsidiary of the same organization, which may be in the same country or in an offshore location to save cost.
Captive Center, including Hybrid Captive
A company-owned offshore operation. The activities are performed offshore, but they are not outsourced to another company. The staff are employees of the parent company.
The goal of Distributed Workplaces is to advise clients on their optimal sourcing strategy, as well as identify and engage the best service providers available.
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