Definition is the first phase in an outsourcing program. This phase will tackle the issues arising while an organization decides to outsource some of its activities to an offshore vendor and how to select the right offshore vendor. This phase will broadly address significant business and internal risks before commencing an offshore outsourcing program, determining value of an offshore program, getting management buy-in and how to choose the right outsourcing vendor. For a vendor, this phase will cover aspects of responding to a proposal requested by the outsourcer.

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