Answer to Question 1
Anytime a company decides to sub-contract its business processes or functions to another company, it can be said to be engaged in outsourcing. In this respect, offshoring is just one type of outsourcing. Over the past 10 to 20 years there has been a growing trend to outsource many different IT functions from maintenance to development. This has impacted ERP systems more and more recently. Some firms outsource the whole management and delivery of their ERP applications. Some may outsource different parts of the development and maintenance. They may also have economic benefits for offshoring these same pieces of the ERP system. This strategy is especially popular for small and medium-sized companies which don't want to invest a lot of resources in their own, unique ERP system.
Answer to Question 2
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