Infrastructure
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Customer does not own facility
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100% Customer owned facility
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Customer does not own facility
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Capital Investment
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No initial investment
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High investment, all insured by customer
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Low capital investment, bigger flexibility throughout the process.
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Risk level
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Shared risks, outcomes under agreement
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All risks are undertaken by customer
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Shared risks
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Implementation speed
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Quick implementation 0 - 2 months
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Long implementation 6 – 12 months
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Quick implementation 1 - 3 months
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Management Focus
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Free up time and resources to focus on strategy and business issues
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Economies of scale at low-cost location with full ownership and control
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Economies of scale at low-cost location with no ownership and partial control
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Leverage factor
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Multi-user environment, best practice process model
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Customer environment
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Simulated customer environment
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Flexibility
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Flexible pricing models, ability to reduce/ increase operation size
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Less flexibility
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Quick adaption to changed business requirements
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Cost management
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Reduce cost
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Control cost
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Control cost
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Control
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Very little control
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Total control
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Total operational control but no financial control
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Culture, Values, Strategy
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Outsourced partner's
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Same as the parent company
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Same as the parent company
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Self - sufficiency
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Only operational unit
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Entire unit – Operations plus all support functions
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Entire unit – Operations plus all support functions
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IP and Data Security
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Moderate
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High
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High
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