Contents 
     1.  What & Why is Outsourcing?
     2.  Merits & Demerits of Outsourcing
     3.  Risk Management of Outsourcing 
     4.  Outsourcing to/from SMEs
     5.  IP Issues in Outsourcing
     6.  Termination Provisions
     7.  Conclusion
                What is Outsourcing?
        Customer
        Customer
       (Outsourcer)    A company’s retaining a 3rd party to 
       (Outsourcer)
                       perform some function that was or 
                       would be performed by the company 
                       itself
                       Transferring a company’s non-core 
                       functions to another service providing 
                       company so that it can focus on its 
         Vendor        core business
         Vendor
      (Outsourcee)
       (Outsourcee)
          Why is Outsourcing Necessary?
                         Customer
                         Customer
                       (Outsourcer)
                       (Outsourcer)
        Logical Reason            Empirical Evidence
        Logical Reason            Empirical Evidence
         - efficiency -                - boom -
         - efficiency -                - boom -
                          Vendor
                          Vendor
                       (Outsourcee)
                       (Outsourcee)
        Why is Outsourcing Necessary?
                Logical Reason
      -  The same reason why international trade is 
       more efficient than local self-supply
      - Somebody can do the same job more 
       efficiently or with lower cost
     Why is Outsourcing Necessary?
         Empirical Evidence
    - Up to 80% of leading enterprises will include 
     outsourcing in their biz. by 2005
    - The US IT industry will save $390 billion by 
     2010 through offshore outsourcing software 
     development
    - In the USA alone, $100 billion revenue in 2000 
     and up to $200 billion by 2005