Managing the Risks of Outsourcing
Outsourcing can be a useful practice, but it has some well-known risks as well as organization-wide consequences.
Loss of visibility. The most significant risk associated with Outsourcing is probably the loss of visibility needed to ascertain the project's progress. It isn't uncommon for projects to report that they are on time right up to the day they are supposed to deliver, and then to take a schedule slip of several months. Be sure that your contract with the vendor provides for timely and meaningful progress assessments.
Transfer of expertise outside your organization. One major risk of Outsourcing is that it transfers expertise about the product area outside your organization. As a result, two things happen: ...
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