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Cost and price. It's crucial that buyers understand both when it comes to outsourcing. What is the cost of providing business services internally? What elements comprise that cost? What is the price for comparable services from an outsourcing service provider? What cost elements affect the provider's price? For the service levels it commits to perform, is the provider's price comparable to its competitors? Undertaking a benchmarking study is the way to determine if outsourcing can deliver the same services at a lower price or better services at the same or lower price as the buyer's internal cost.
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