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 ideas and suggestions to prevent, avoid, or minimize the impact of each. Let’s discusses real and perceived risks in the offshoring process along with ways to minimize them.

CONTROL RISKS

When thinking about offshore outsourcing, many companies fear a loss of control over quality, schedule, and cost. Companies see their present in-house staff as dependable, quality standards as high, and market expectations as well understood by their teams.  So why change?

“You don’t choose your partners based on who will give you the cheapest price, alone,” We are smart, extroverted problem solvers who will take equal responsibility with you for the delivery of your product. Our people will take the initiative and challenge each other to solve development problems.

SECURITY RISKS

Security fears are largely twofold, centering on potential violations of intellectual property (IP) rights and potential risks to data security.

We know that damage caused by information leaks is costly and often irreversible. In the case of sensitive information, like financial, human resources-related data, competitive information, and market research related data, the companies ensure that we protect your information adequately. We keep you involved in each step of the way, you never lose control.

PERFORMANCE RISKS

Will the resources be talented? Will the offshore team delivers code that is written well, performs well and is maintainable? Will they do it every time? Will they require a large amount of supervision?  and many more questions related to the performance of resource right?

Our vision and promise as a technology partner are that the allocated team will perform well as one that was hired in-house by you and we practice well-structured code, tested, and optimized for the intended environment; and that technical documentation is accurate and user-friendly. 

Outsourcing can also help to make your business more flexible and agile, able to adapt to changing market conditions and challenges while providing cost savings and service level improvements. You minimize the risk of investment while gaining greater flexibility and agility: your IT support provider should be able to recommend products and systems that support your business strategy and scale as your requirements grow.

GTC is a leading outsourcing company that specializes in providing dedicated remote staff and offshore staffing services. Learn more about our services.