Outsourcing, specifically offshore outsourcing is growing at a promising rate every year and shows no signs of slowing. Although some organizations have apprehensions on taking on this venture, it has not stopped the development of offshore outsourcing.
However, just like with anything else in the business world, there are always risks entailed with every endeavor and offshore outsourcing is not an exception. There are quite a few risks that organizations which, practice offshore outsourcing or those who are planning to, should know about.
Data Protection
Security practices differ from country to country that is why it is a must to check whether the vendors you have partner up with has the kind of protection and security practices that your company requires. When working on international business, the risk of security leakages is high. Although this is not really that much of a major concern in offshore outsourcing, data protection and security should be implemented as much as possible.
Cost-Reduction Expectations
Organizations automatically assume that they will be able to save a lot basing on a man-to-man comparison. This should not be the...