The Risks of Outsourcing
There are three general categories of risk: external, internal, and personal. Any of these could torpedo an outsourcing engagement.
External Risks
External risks are those associated with the factors outside of your organization’s control. The most important external risks include the following:
Geopolitical Instability
Terror attacks in “safe” offshore destinations such as Mumbai or Moscow underscore the importance of understanding a destination country’s political stability. A less dramatic example would be if the cost of running a user conference in Budapest went up 25 percent due to a sudden change in tax regulations. A friend almost lost his job over such a situation because he exceeded his budget.
Security, Privacy, ...
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