One single definition of direction does not exist. Direction in the context of outsourcing is a relatively new concept. It is especially a popular concept and for that reason alone every organization ensures that they say something about subcontracting that gives its own interpretation of the term direction. We believe that it is good to rather stay with the essence of direction.
Direction, according to the dictionary, has the following meaning: substantive, artistic guidance. Direction concerns guidance and is therefore steering. Generally, a direction organization will be designed when the outsourcing is a fact. It is often the product of one of the transition phases. Direction is even without outsourcing  necessity (it is a way to bring together supply and demand by arrangement). Directed processes guide the internal organization and creates opportunities for performance measurement, which is a basis for determining an outsourcing strategy. Also, the demand side needs to be regulated when there is no outsourcing present.
Direction is therefore limited mainly to the tactical level within an organization. In addition, the directing role is operationally substantively responsible. This means that a directing organization has knowledge about the field. Compare directed organization with a conductor of an orchestra. Most conductors are excellent musicians; they can also compose fine. But in the role of conductor, he / she is at the helm. He listens, determines the rhythm, the speed and force with which the musicians need to play. The conductor is responsible for the music as a whole sound to the listening public.