Logistics is a part of supply chain process that involves material management and physical distribution processes. Logistics outsourcing is the process of using the expertise of a third party in order to perform in-house logistics functions. The best example of logistics outsourcing can be seen in terms of EDI outsourcing that involves linking the supplier, logistic provider and the vendors together by an EDI system.

Typically a logistics outsourcing involves three types of outsourcing arrangements as follows;

Most companies outsource their logistics functions in order to cut costs, get better service, focus on core competencies, make use of latest technologies and stay ahead in the competition. The current most favored destination to outsourcing logistics is India. There are many companies that offer logistics outsourcing services in India. In addition to logistics India also is the most favored destination for outsourcing companies sales and software development.