Benchmarking in outsourcing has experienced significant change in its relatively brief history. It has evolved from a single-focused pricing comparison (that some would say was used solely to beat up on providers) into a richer, broader array of tools that both buyers and providers can use to improve the outsourcing process, the relationship, and ultimately the outcomes. Selecting the right benchmarking tools is vital, but the benefits are almost infinite. The original intent of benchmarking in outsourcing, and still one of its many uses, was predominantly to identify and manage price drift over the course of an outsourcing contract, particularly ...
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Outsourcing involves contracting out a business process that a company had previously done internally. There are several reasons a company might want to outsource a process: it can be less expensive, and the outsourcer may have expertise and/or equipment that a company may not have - and may not need on a full-time basis. Some outsourcing work may be done off shore, but not all outsourcing projects are offshore.
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