If a company decides to use independent suppliers for a product, it can generally exploit the vigorous competition arising among several firms that are interested in supplying that product.

Successful outsourcing requires a company to provide its suppliers with information about its products and plans that can fall into the hands of its competitors and give them a business advantage.

Certain tasks, such as processing a company's payroll, are commonly outsourced, whereas others, such as handling the company's core business, are not.

For a company to provide a product or service for itself as efficiently as an independent supplier can provide it, the managers involved need to be as expert in the area of that product or service as the people in charge of that product or service at an independent supplier are.

When a company decides to use an independent supplier for a product or service, the independent supplier sometimes hires members of the company's staff who formerly made the product or provided the service that the independent supplier now supplies.