Executive Briefings

Monitoring and Managing Global Sourcing & Services Outsourcing Risks

Today, outsourcing has become a mainstay of corporations. It is mainstream, global and rapidly changing. This dynamic has a huge impact on the competitiveness of global corporations. Yet, global sourcing is not what it was even a few years ago. Its complexity has risen manifold. It embraces multiple locations and multiple processes as companies seek to optimize the gains from outsourcing and offshoring.

This rise in use of outsourcing has been dramatic, exponentially raising the potential for outsourcing corporations and for nations seeking to provide the services. But it also has raised risks and brought on newer, and varied, risks, many of which are not fully assessed by risk managers. Over the past year, in particular, many of these risks have been brought to light.

According to Gartner, the top 30 outsourcing destinations are emerging markets that bring varied and often high risks.

This paper begins with a discussion about the new risks facing companies leveraging offshoring and outsourcing. It then moves into a discussion about a new model for comprehensive risk monitoring of outsourced services. The model also has the capability of predicting risks before they impact a customer’s business.

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