One style does not fit all

The different types of outsourcing and the management requirements for each of them are discussed. An outsourcing has a high strategic importance to the buying company when it is aligned with the organization's long term strategies and when its results are either positive or negative. Functional outsourcings are characterized by both low strategic importance and financial impact, and the products/services that fall in this category belong to support activities which are highly standardized. Leverage outsourcings are those that have a low strategic importance, but high financial impact to the outsourcer, and they concentrate on operational aspects, leaving strategic issues.