risks of outsourcing

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1 min read

One of the primary risks of outsourcing is a lack of communication between the business and the service provider. Otherwise, there will be misunderstandings about what services are being provided, delays in completing work, and a lack of accountability.

During this phase, companies should also determine the different categories of risks they may face within the framework of the outsourcing of its activities. These risks can be legal, operational, financial or reputational. To be able to manage these risks, companies wishing to outsource their operations must identify and assess each of these risks and their exposure to them.

One of the risks associated with outsourcing is a lack of domain knowledge on the part of the service provider. This can create problems, including a failure to understand the client’s business requirements, inaccurate advice, and a lack of commitment to the project. more read https://gloriumtech.com/6-risks-to-avoid-in-software-development-outsourcing/