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Before entering into an outsourcing agreement, make sure you have done thorough due diligence. Obviously, the type and depth of diligence varies based on what services are being outsourced, but at the very least, you should review the financial stability of the outsourcer, talk with some of their other customers (including at least one former customer to find out why they quit doing business with them), and review their business continuity/disaster recovery plans. If your business requires SAS70s, ISO certifications, PCI compliance, etc., determine the outsourcer's credentials early in the process.
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