One of the key reasons for outsourcing services is to have a competitive advantage by focusing on core competencies and leaving other roles to the experts. Some of the risks involved in outsourcing include: information security, loss of control and compromising confidentiality.
Here are four ways you could mitigate risks involved in outsourcing:
- Carefully screen applicants to verify they are qualified to manage the project you are outsourcing. The reason for outsourcing is to save money – not to throw it away, so you want to be sure the firm you are outsourcing to is going to add value to your business, not putting your reputation at risk.
- Invest in having a good lawyer and create tight NCDA documents. You want to make sure that all your contracts, are clear, transparent and protect your interests and your clients.
- Be clear about scope of project or responsibilities, deliverable expectations, time line, and supplementary budget if project is over budget or other expenses come up. This should include, agree on a step-by-step project plan, specifics regarding project phases and clear dead lines.
- Appoint someone in the company to liaise with the outsourced firm. Communication is key in this partnership, so schedule progress meetings at intervals to be sure all parties are on the same page and there is no room for surprise that could jeopardise the project. This also minimises the risk of losing control to the outsourced firm.
