Owns customer relationship

Establishes MSA/SLA criteria

Manages stakeholder interfaces

Defines compliance/regulatory adherence

Service Provider (the "vendor")

Local hiring and staff management

Facilities & technical ownership

Performance metrics & reporting

Targeted Roles & Responsibilities

Promote Customer Centricity

Foster Quality Service Delivery

Create New Opportunities

6. FACTORS CONTRIBUTING TO OUTSOURCING

Education levels in countries in Eastern Europe and Asia have grown quickly, so that traditional knowledge advantages of western countries have diminished.

Major differences in salaries, wages, and related cost of labor between the western world and these developing countries are however (still) remaining.

Transportation costs have gone down. Data communication and internet progress decrease the costs of transport for many non-physical services and products, and Supply Chain Management and Demand Chain Planning technology also decrease transportation and total Supply Chain costs for physical products.

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* Contributed by: -
Priyanka Ghosh & Alvika Derhgawen,
PGDIM, IM-11,
NITIE, Mumbai.