EDI (electronic data interchange) has become one of the most reliable systems for companies to exchange information related to their business. This system coordinates the transaction process, thereby reducing the overhead costs. However, setting up an EDI system requires expertise and infrastructure, such as a computer network and the related software and hardware. Companies therefore often opt for EDI outsourcing. Many companies specialize in implementing EDI systems by providing the necessary hardware, software and the subsequent management services. All these services are provided at a fixed monthly charge. EDI outsourcing has come to be a viable option for medium and small companies who lack the expertise to implement the system on their own.

There are many companies specializing in EDI outsourcing. These companies provide their clients the option of outsourcing for individual functions of the EDI system or the operations of the whole EDI department. In case a business corporation chooses to implement an EDI system, it has to invest money on the required infrastructure and staff. Once the system is installed, it has to be maintained and monitored constantly. This maintenance job requires dedicated staff. Complication results if the partner companies have different network systems. Handling these issues efficiently requires expertise. EDI outsourcing has therefore gained popularity. The companies specializing in this field leverage on their years of experience to provide the most cost-effective solutions to EDI management.

Companies preferring EDI outsourcing must choose a service provider based on the number of years of experience, the technology being offered, the cost and the service provider