Describe the three basic alternatives of ownership of assets and facilities in an outsourcing contract
What will be an ideal response?
The ownership of assets and facilities is one important factor in determining the cost of the outsourcing contract. The three basic ownership alternatives are as follows:
• The firm can transfer ownership of the assets along with operational responsibility to the outsourcing service provider.
• The firm can transfer the assets to a third party under a leaseback arrangement.
• The firm can retain ownership of the assets while the provider takes on theoperational responsibility.
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