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Professional outsourcing. IT outsourcing. Manufacturing outsourcing. Project outsourcing. Process outsourcing. Operational outsourcing.
Services being perishable can't be stored (inventorised) Service is time and place dependent. Production of services can't be separated from consumption. Customers are part of production. Lack of Standardisation. Service can't be touched like goods.
An outsourcing agreement is a business contract between a service provider and a service receiver. It contains all of the terms and conditions of the business relationship, including service provider fees, services to be covered, etc.
Time-and-materials contracts, which bill the project at an agreed-upon rate based on actual resources used and time spent by developers. Fixed-price contracts, which bill the project at a flat rate, regardless of the time spent or resources used.