What Are The Risks Of Outsourcing?

What Are The Risks Of Outsourcing?
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  1. Higher the chances of profit, more are the risks. There are many risks associated with outsourcing, but major four of these are:-
    1.Loss of control: A company may face the inability to engage in face-to-face discussions, brainstorm, or explore nuances of obstacles could cripple a project’s flow.
    2.Loss of innovation: When sectors such as IT, software development, or materials management—are outsourced, innovation may be hampered.
    3.Loss of Organizational Trust: An outsourced organization often feel conflicted as to who their “real” boss is, is not any good for employer-employee relationship.
    4.Higher-Than-Expected Transaction Costs: One of the most important and least understood considerations in the make-or-buy decision is the cost of outsourcing risk.

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