Outsourcing includes both foreign and domestic contracting, and sometimes includes offshoring or relocating a business function to another country. Financial savings from lower international labor rates is a big motivation for outsourcing/offshoring.
Enterprises look to outsourcing to reduce costs, improve quality, reduce management effort and bring about transformational change but too often these benefits fail to materialise. PromaSoft helps its clients understand what suppliers really need to bring about these outcomes and, where they are viable, to implement successful and sustainable arrangement
The opposite of outsourcing is called insourcing, which entails bringing processes handled by third-party firms in-house, and is sometimes accomplished via vertical integration. However, a business can provide a contract service to another business without necessarily insourcing that business process.