Rightsourcing is selecting the best way to procure a service and deciding whether a company is best served by performing a business requirement in-house (insourcing) or contracting it out to a third-part service provider (outsourcing). Rightsourcing literally means "choosing the correct source."
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Analysis for making the decision may be based on cost savings, but it also takes into account quality and expediency. In some larger companies, a vendor management office (VMO) is responsible for carrying out a comparative analysis and recommending the most appropriate sourcing arrangement.