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Whatstrategiesdocompaniesusetomitigateriskswithoffshoreoutsourcing?Quora
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Whatstrategiesdocompaniesusetomitigateriskswith
offshoreoutsourcing?
Someshorttermrisksarequality,timelydelivery,tradeandlegalproblems.Somelongterm
risksarelosingintellectualpropertyandbranddilution.
Arethereanyexamplesorbusinesscasesinwhichcompaniesmitigatetheserisks?

5Answers

HowdoImitigatetherisktoastartupfromnon
payingcustomers?
Whatoffshorecompaniesaremajorinvestment
bankingfirmsoutsourcingto?
Outsourcing:Whatisthebestwaytofindacustomer
foranoffshoreteam?
Outsourcing:WhataretheadvantagesofOffshore
SoftwareDevelopmenttoIndianITcompany?

DmitriBlackthorn,IToutsourcingenthusiastfromKyiv,Ukraine
364Views

Well,ifyoudecidedtolookforaserviceprovidetooutsourceyourR&D,herearethemost
commonrisksexplained andhowtomitigatethem:
1.Lossofcontrolsincethedevelopmentteamisnolongermaintainedbyyou,youcan
missoutonthebigideasthatcomefromcollaboration.Thesolutionisputtingtogetheran
agreeduponplanwithyourITserviceproviderandvisityourdevelopmentteamregularly.
2.CompromisingQuality.Sincenooneknowsyourbusinessbetterthanyoudo,an
uneasysenseofscepticismcansettleinwhentoaremoteteam.Youshouldnthesitateto
speakwithatleastthreetofiveoftheITprovidersclients,currentandpast.
3.HiddenCosts.Askabouthiddenfeesfornewsoftware,hardwareupgrades,any
onsitetroubleshooting,andchargesforafterhoursservicesthatwerentagreeduponor
outlinedintheoriginalcontract.

WhatarethebestwaystoreachcompaniesinUS
whoarelookingforoutsourcingtheirprojectsortask
tooffshoreofficesinIndia?
Whydocompaniesoutsourceoverseas/offshore?
WhenoutsourcingdevelopmentorUI/UX,doZurich
startupsuselocalcompaniesornearshore/offshore?
InProjectoutsourcing,doestheoffshoringcompany
ortheclientpayforanyMicrosoftsoftwareusede.g.
SharePoint?
Arethereanyoffshoreoutsourcingcompanieslocated
inToronto,Canada?
Docompaniesoutsourcetheirriskmanagement?

4.LegalIssues.Asabusinessowneryoumustprotectyourintellectualproperty(IP).
So,don'tforgettosignaconfidentialityagreementwithaserviceprovider.
5.Lackofcommunication.Communicationmaybechallengingiftherearecultural
andlanguagebarriers,differenttimezoneinconvenienceetc.Werecommendtovisityour
outsourcedR&Dcentertotakecontroloftheentireprocess.
Hopethathelps.
Written22Dec2015

RelatedQuestions

MoreAnswersBelow

HowdoImitigatetherisktoastartupfromnonpayingcustomers?
Whatoffshorecompaniesaremajorinvestmentbankingfirmsoutsourcingto?
Outsourcing:Whatisthebestwaytofindacustomerforanoffshoreteam?
Outsourcing:WhataretheadvantagesofOffshoreSoftwareDevelopmenttoIndianIT
company?
WhatarethebestwaystoreachcompaniesinUSwhoarelookingforoutsourcingtheir
projectsortasktooffshoreofficesinIndia?

PabloRuiz,InvestmentAnalysis&PortfolioManagementat@NxtpLabs
1kViewsPablohas30+answersinStartups

AsacompanythatisbasedinArgentinawhosemostclientsarefromabroadwetryto
mitigatetheperceivedriskofworkingwithusbyworkingascloselytotheclientas
possible.Wearealwaysavailable(Inregularworkhours),wehavePMassignedtotheir
projectssotheycanaskthemanyquestionsorreachthemoutifneededandwesendthem
regularbuildssotheycanseetheprogressofwhatwearedoing.
Additionally,bothmeandmypartner,wetrytokeepahighprofiletoshowthatweare
notafacelesscompanyfromfarawaythatwon'tberesponsiblefortheirmistakesis
somethingshouldgowrong.
Written1Sep2012ViewUpvotes

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8/17/2016

Whatstrategiesdocompaniesusetomitigateriskswithoffshoreoutsourcing?Quora
AlleliAspili,http://www.infinito.com
Searchforquestions,people,andtopics

SignIn

374ViewsAllelihas90+answersinOutsourcing

Justtomakemyanswersimple,Ithinkonebestconsiderationthatthesecompanies
shouldtakeintoaccountisCOMMUNICATION.IhavebeenworkinginaBPO
Company for3monthsalreadyandIcanseesmoothflowofoperationsandprocesses
becauseofgoodcommunication.Misunderstandingsdon'thaveroominthiskindof
industrybecausethat'sthetimewhentherisksyoumentionedabovewouldreallyblow
everythingoff.
Written22Jan2013

JohnMarvinDeLeon,LinkBuilder
433Views

MitigatingrisksisavitalpartofoutsourcingandmostofthestrategiesIcanrecommend
areaboutmanagingoperationsandmonitoringdatatransactions.Alwayskeepinmind
thatyouroffshorevendorwillbeanextendedformofyourcompanyforalongperiodof
time.Itsalsoagoodideatohaveamethodologyfordeterminingwheregoeswhereandto
makesureprotectionsareinplaceintheeventofturnoverofdata/information.Offshore
outsourcingdoesnoteliminateyourbusinessriskshowever,itmovessomeoftherisksto
offshorevendor.Youneedtohavepropercontingencyplanstogobacktoyourprevious
systemsandbusinessprocessesifeverythingfailedwiththeoffshorevendor.Developinga
contingencyplansandprocessesmightbemoreexpensivethantheactualoutsource
projectexpensesitselfbutyoumusthaveplanstoprotectyourcompanyfromoffshore
outsourcingfailuresthatcanpossiblyhappen.
Written19May2014

GaneshRanganathan,Handdy.com,Cofounder
357Views

Thebestwayistotakeatripandvisityoursupplier.Checkfortradereferences.Checkthe
otherreferencestheyhaveandyoushouldbegood
Written1Sep2012ViewUpvotes

RelatedQuestions
Whydocompaniesoutsourceoverseas/offshore?
WhenoutsourcingdevelopmentorUI/UX,doZurichstartupsuselocalcompaniesor
nearshore/offshore?
InProjectoutsourcing,doestheoffshoringcompanyortheclientpayforanyMicrosoft
softwareusede.g.SharePoint?
ArethereanyoffshoreoutsourcingcompanieslocatedinToronto,Canada?
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