How well an outsourcing arrangement is managed matters more than where the outsourcing services are provided. That point has at times been obfuscated by politically charged discussions and articles that examine the pros and (more frequently) the cons of off-shoring. “Off-shoring” can be performed by an external outsourcing vendor or within a company that establishes “captive” shared-services operations in other countries. The geographic location of an FAO provider does matter, and its potential implications should be addressed during the selection of a provider; however, the location of the outsourcing services matters less than how well the FAO buyer manages and monitors the relationship. This guideline focuses squarely on the latter challenge.
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