How To Manage And Mitigate Offshore Risks

What are the real risks in offshoring both ITO and BPO work? The author says understanding those risks helps buyers set up procedures to mitigate them, making their offshore engagements more successful. The author says there are three types of risks buyers must worry about: Operational risk: The propensity of a process to break down and result in less than acceptable quality of work; Strategic risk: Losses that result when the offshore supplier behaves opportunistically; Composite risk: Risk that arises over time from a combination of factors like erosion of competence and loss of flexibility.