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Offshore IT Outsourcing
Risks
Offshore IT Outsourcing Risks : 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.
IT Outsourcing Risks
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.
Below are some risks involved in Software development outsourcing:
1. Cost and Time over-runs for the project :
(a) Due to selection of wrong offshore outsourcing vendor that lacks expertise
for executing that particular offshore project
(b) Cultural mismatch with outsourcing partner
(c) Political or other instability Check to see if certain technology can even
be exported off-shore or to specific countries.
2. Legal Standing and Access to Arbitration
Finally, successful risk management depends on diversification of sourcing.
This implies load balancing between suppliers, or their facilities, in
different countries, effective management of multiple teams, and dependencies
on a variety of telecom providers.
3. Intellectual property rights
May need to take additional steps to protect rights.
4. Data privacy and security
Read more about Outsourcing Software Development Services and about our project visibiltity in our Global Delivery Model
Software Outsourcing Services, Software Outsourcing Categories, Benefits and Advantages of Outsourcing, Outsourcing Issues, Risks in Software Development Outsourcing
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