BPO (Business Process Outsourcing) Blog

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Monday, March 27, 2006

Risks of outsourcing have been described below:

• Loss of expertise: Customers may lose the expertise and knowledge of carrying out the outsourced processes with time.

• Loss of control: Companies perceive the risk of losing control over the operations of their processes. Also, if the (trained) employees in the vendor firm leave the job, the buyer may be at risk.

• Financial instability of the vendor: If the vendor becomes financially unstable in some years, the buyer will have to search another vendor; the operations being at risk, if it does not search the new vendor fast.

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