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Outsourcing is the performance of an activity, process, or processes
by a third-party. Outsourcing typically refers to third parties
outside of the organization, although it is possible to have
intra-organizational “outsourcing,” where one group
in an organization might be compensated to perform an activity
or process for another group
There are typically two major categories of outsourcing:
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Outsourcing relationships are typically governed among organizations
using a comprehensive document known as a service level agreement,
or SLA. The SLA contains the negotiated understanding between
the parties including detailed expectations of performance of
the activities and processes.
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