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"Outsourcing" is a word loved by some and hated by others. Frustration is understandable, as many manufacturing roles, call center services, and openings in almost every industry have been shifted to other specialist organizations inside and outside the country. But the economic benefits and ability to follow-the-sun/operate 24x7 has had tremendous impact on many businesses as well. However, it seems that the outsourcing label is being applied by more people in more instances to SaaS, and it's important to understand the differences between having someone else help manage your IT services and subcribing to application functionality or business processes over the web.

Typically, outsourcing is used because labor can be hired for less money or outsourcers can operate more efficiently by spreading investments and cost across a wide group of customers.A While using a SaaS provider can save money, their services are generally employed because customers can turn them on nearly immediately (fast time to value), because they are specialists in a given application segment where they blend optimized feature/function/performance with fully managing the compute environment needed to deliver the functionality (shift complexity), and they can offer a lower, more predictable spend over time (shift risk). This allows the business to focus on business:

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