Virtually any service can be “outsourced,” except those necessary for the exercise of non-delegable authority. Non-delegable activities are those that apply to the fiduciary responsibility of boards of directors, the parental responsibility for infants and the criminal responsibility for one’s own intentional misdeeds.
Many business functions may be eligible for outsourcing as delegable activities. This section considers many such activities. However, delegation does not relieve liability for mistakes of the service provider.
Services Not Traditionally Outsourced
Outsourcing has begun to have an impact on other services that never had to attain minimum service levels, abate pricing due to failures in service levels and stand ready to change course upon the customer’s instruction. Professional services are being encroached by non-licensed service providers.
Autonomy of the Parties
By law and policy, parties may enter into commercial contracts only for legitimate purposes that conform to society’s norms. Accordingly, enterprises and service providers both need to be aware of current and prospective laws on outsourcing. The parties need to monitor and participate in the public debate over possible restricting freedoms of parties to engage in outsourcing transactions.