3 Main Outsourcing Risks and How to Mitigate Them
As outsourcing has become an increasingly standard business practice in the last decade, it has created a new set of risks and challenges for organizations. And while many organizations have improved their outsourcing planning and management capabilities, complex outsourcing options, value expectations, and service integration and regulatory issues present new risks and challenges, smaller businesses still shy away from it. They associate several risks with the process. The outsourcing of more routine IT functions such as documentation, data entry, application maintenance, data center operations, network management, and disaster recovery impose less risk on the enterprise due to the well-defined and routine procedures involved. However, when it comes to the development of business apps, managing the interface to a mobile workforce and customers, data mining and other business-specific IT functions, the risks are higher than outsourcing does not achieve the desired outcomes. The challenges outlined below are most relevant to these less outsourced functions. Here are three potential outsourcing issues are highlighted in this article, along with some