What are the Risks of Outsourcing?
As with any business endeavor, there are a few risks associated with outsourcing. The main risks are the reliability and delivery quality of the BPO firm selected. In addition, confidential information and proprietary business practices are exposed to the BPO provider. Lastly, there may be a perception of a lack of control over the outsourced process, though this is less of an actual risk, but rather an issue in being comfortable with outsourcing in general. The risks associated with outsourcing are fundamentally mitigated and minimized by careful selection of the BPO provider. The key is to ensure that the provider has the expertise and capabilities to service the outsourcing requirements, understands the service quality level expected, is reliable and responsive, and possesses and an excellent reputation for integrity.
