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There is no human activity that does not involve risk. Offshore Outsourcing is no stranger to risks. There will be risks at every stage of the program. Risks are those events or conditions that may occur.

Read more about Blunders in Outsourcing.

Risks have an impact on:

  • Cost
  • Morale
  • Business survival

It would be appropriate to consider risks in outsourcing before you embark on this journey. Once the risks have been identified they should be assessed and programs should be put in place to mitigate those risks.

Each country offers its own competitive and comparative advantage to offshore outsourcing. Beyond the obvious there are certain risks to be considered. As the world changes newer risks emerge. Should you look for a vendor that has a disaster recovery plan? Ask your vendor hard questions and assess the risk associated with the operations.

Risks can be categorized into:

Once the risks have been identified, assess the probability of occurrence and the impact to your program. The risks with higher probability of occurrence or with maximum impact should be weighed and prioritized for risk mitigation.

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