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As infrastructure outsourcing evolves and a new business model emerges, the language around it changes as well. These tips will help you stay on top of the terminology.

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Dr. Christian Baader, 44, is vice president of BPO Strategy, Market Development and Marketing for SAP, the enterprise application software provider. He is one of the architects of SAP’s unique BPO partnering model with service providers, which began to get traction in 2004.

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Many businesses are wary of outsourcing. They’re concerned about handing over key business functions to an external organisation over which they have no direct control.

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You get pictures mailed to you every birthday
They get shipped in for graduation ceremonies
Shipped back for the rest of year for day care, room and board …

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Outsourcing is the strategic use of outside resources to perform activities traditionally handled by internal staff and resources.

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CIOs who establish clear requirements, a well-defined sourcing strategy, internal alignment and structure in supplier selection and management processes should expect to receive big dividends in the business value delivered from outsourcing initiatives.

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Outsourcing is common – if you employ an outside company to clean your premises you’re already doing it.

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When outsourcing, remember that although the supplier takes responsibility for the process, you still need to actively manage the relationship.

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Bulgarian outsourcing companies will move ahead to more value added services in the medium term as the business matures and conditions improve, officials said.

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“About a year ago I hired a developer in India to do my job. I pay him $12,000 to do the job I get paid $67,000 for. He’s happy to have the work …

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