what is the Risks in Outsourcing?
2007-10-22 18:51:19 · 3 answers · asked by sekarlatcha l 1 in Business & Finance ➔ Corporations
Risks of outsourcing -
* Loss of control
* Viability of service providers
* Quality of service
* The issue of trust
* Performance of Applications and services
* Lack of expertise
* Hidden and Uncertain Costs
* Limited Customisation and Enhancements
* Knowledge Transfer
* Shared Environments
* Legal & Regulatory Matters
Each of the above risks is discussed at the 1st link below.
The article "Inherent Risks of Outsourcing" is found at the 2nd link.
The article "Outsourcing's New Risks" is found at the 3rd link.
2007-10-26 16:27:21 · answer #1 · answered by Sandy 7 · 0⤊ 0⤋
1. Cost-reduction expectations
In reality, most IT organizations save 15%-25% during the first year; by the third year, cost savings often reach 35%-40% as companies "go up the learning curve" for offshore outsourcing and modify operations to align to an offshore model.
2 Cheap Spaces Available......
source(S):
http://www.tpi.net
2007-10-22 19:02:54 · answer #2 · answered by grrajeshkumar 2 · 0⤊ 0⤋
well look at all the China recalls
2007-10-22 18:59:41 · answer #3 · answered by bstuck2000 3 · 0⤊ 0⤋