Skip links

risks outsourcing

Outsourcing risks and how to avoid them

Outsourcing is making a comeback. Recently it’s a common solution for companies in all types of sectors to experience the benefits of outsourcing or outsourcing activities of some of their departments.

The benefits are many, ranging from being able to handle problems without overflowing calls and in different languages to making more resources available for their own software development team. IT technology is by far the most outsourced department in companies around the world.

Outsourcing is extending a team with a more prepared team to do the specific service a client requests.

Once you’re ready to take the leap you’re often confronted with two choices: offshoring and nearshoring. Offshoring or offshore outsourcing is extending your team with a team that’s located far from your own company. Nearshoring or nearshore outsourcing being the option of outsourcing to nearby sites, easier to control, and in which the staff that performs the contracted activity have a similar culture.

The risks of outsourcing

Your company’s reputation

In spite of the benefits that it entails, you need to be aware of the risks of outsourcing if not carried out properly. When you outsource your IT department you must continue to monitor all risks and ensure your reputation. Therefore, if you outsource to a company that does not guarantee a high-quality service, you could affect your own company’s reputation.

But if the outsourcing project is executed correctly and you choose the right partner, these risks are under control, while achieving the goals set of your company.

Internal risks

When you outsource activities to another country you need to make sure that your nearshoring or offshoring partner will comply with the promised SLAS, the proper training of both your extended as well as your local team and other requirements that you consider necessary.
Data access, handling and storage of customer data requires maximum safety.
Differences in language and communication protocols, social and commercial norms and even time differences between your local and your extended team must be duly controlled and monitored.

How can these risks be controlled?

The most effective way to control the risks of outsourcing is adopting a series of good practices before the contract is signed. This means establishing a strategy, preparation, training and coaching in your company to start with a clear goal to review and assess the risks or benefits of implementing your outsourcing project.

[cta id=’11144′]