Selective outsourcing is a targeted sourcing strategy that relies upon sending very specific functions and work off-premises while keeping other functions on-premises. Off-premises work can be performed either offshore or onshore.
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There are many reasons organizations pursue a selective outsourcing strategy, including cost management, and the ability to access skill sets not possessed by staff members. Done properly, selective outsourcing can create a competitive differentiation by allowing an organization to take advantage of the knowledge and services offered by a third-party provider.
Selective outsourcing may also be referred to as rightsourcing.