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as well. For example, the quality of the products can be improved if some components are produced by specialized manufacturers.

When a company chooses to outsource some of their activities it is important to make the best decision in choosing the potential partner. This decision depends on many factors, for example in which countries the company and the partnerare located, the quality of the services or goods that the partner can deliver, how well the corporate cultures match each other and other things. Also the ability of the other company to innovate quickly is usually important. There will be more information about selecting the outsourcing partner in the seventh chapter of this report.
After the management has decided which company can do the outsourced activities a contract has to be negotiated. It is important that this contract will be flexible because there are many things that can go wrong with outsourcing. For this reason the company should make sure that it is not boun

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