Service Oriented Architecture

In business, outsourcing involves the contracting out of a business process to another party. Outsourcing sometimes involves transferring employees and assets from one firm to another, but not always. Outsourcing is also the practice of handing over control of public services to for-profit corporations. Outsourcing includes both foreign and domestic contracting, and sometimes includes offshoring (relocating a business function to, another country). Financial savings from lower international labor rates can provide a major motivation for outsourcing/offshoring. The opposite of outsourcing, insourcing, entails bringing process­ es handled by third-party firms in-house, and is sometimes accomplished via vertical integration. However, a business can pro­ vide a contract service to another business without necessarily insourcing that business process.