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.