1. Vinay Gupta, president and CEO of Janeeva, which sells software to help companies manage outsourcing relationships, gave this advice: “I would strongly encourage business owners to visit the vendor’s facilities. There are a lot of fly-by-night operators, so you want to make sure you have touched and seen the facility before you hand them your business. And I would do at least a 30-day free pilot with the provider.You want to see if it is a good fit and find out who you will be interacting with on a day-to-day basis.” Not all companies follow this advice.

Discuss why companies would or would not take these precautions when setting up an outsourcing relationship.