RISK ASSESSMENT

Risk Assessment

Risk Assessment

Outsourcing, by its very nature, is a risky and uncertain proposition. During negotiations, vendors may paint a rosy picture of their strategic capabilities, but only experience will tell whether they are true. If business conditions change drastically, the vendor contract may need to be thoroughly overhauled, which may adversely affect the pre contract assessment of the benefits of outsourcing. (Das, 2001). If the strategic assessment results in the green signal to go ahead with outsourcing, the next step is to conduct a thorough analysis of the needs of the functions and processes that are likely to ...