The current situation, to which future performance can be compared.  When considering outsourcing a function it is important to ‘baseline’ both the current true costs to provide those services and also to establish the actual service levels delivered.  This baseline of the ‘status quo’ can help in making judgements as to whether outsourcing will improve service levels, reduce cost, or both.  The research associated with base lining the current situation can ensure that managers have a fuller understanding of real costs and actual service levels, which can then be used to benchmark against similar organisations, or to act as a comparator to evaluate commercial offers from providers bidding to provide the service externally.  See also Outsourcing.