As such you ensure that you have the same type of control on their processes that you would your own. You pass it on. You pass it on. Two such functions are sourcing and purchasing – both are critical pieces to any effective procurement … It's possible to outsource … Unlike outsourcing, offshoring is primarily a geographic activity. This applies to any of the processes included in your quality system. The desire of the companies to be cost effective in the face of cut throat competition from economies that have cheaper labor and other cheaper competencies has led to outsourcing … What outsourcing is. Procurement deals with the sourcing activities, negotiation and strategic selection of goods and services that are usually of importance to an organization. Sourcing is the activity of scanning the market, its actors and the chain of events that may influence in some sort for the purpose of acquiring services or goods at optimal conditions. What subcontracting is. Many people use the terms purchasing and procurement interchangeably, but despite their similarities, they do have different meanings.Let’s clarify any confusion on the difference between procurement and purchasing. What's the difference between Offshoring and Outsourcing? If you ask a layman about the difference, you may get a reply that purchasing and procurement are one and the same.
Outsourcing refers to an organization contracting work out to a 3rd party, while offshoring refers to getting work done in a different country, usually to leverage cost advantages. For those in the industry, procurement is tossed around as a placeholder, of sorts, that’s come to represent numerous functions in the procurement process.

This is done at the Purchasing level. In the West, goods are expensive because the staff required to produce and distribute them are costly. But, if you ask the same question to a procurement officer of an enterprise, you’ll get a significantly longer answer as to how and why there’s a world of differences between purchasing and procurement. Outsourcing vs Contracting Outsourcing has become a common phenomenon in this age of globalization.

What subcontracting is. I've always understood outsourcing to mean that you subcontract part of your process to a company outside of your own (for cost reasons, usually). The initial service provider is in control but another provider does the work.