IPS Blog

Outsourcing Risks: What 95% of BPO Vendors Won't Tell You

May 20, 2009 4:54:38 AM

Today's competitive business landscape forces more out-of-the-box thinking by business leaders. Outsourcing can result in big payoffs to the bottom line, but it also comes with its share of risk. Outsourcing non-core competencies is a common business practice these days. The further decision to offshore certain outsourced processes, if made wisely, can give a company the competitive advantage it needs to succeed.

As the business process continuum becomes increasingly knowledge-based, the most critical knowledge work requires advanced decision making capabilities. The processes that make information quickly and readily available to knowledge workers - opening mail, scanning documents, capturing data and automating workflow - are not generally part of a company's core competency and are frequently outsourced. Yet these same processes can have significant impact on the quality, availability, reliability and integrity of the information produced. Companies must assess this impact prior to making the decision to offshore these outsourced processes; issues of culture, language, and knowledge transfer may increase the risk, offsetting any cost savings benefits.

 

As a 25-year veteran of the outsourcing business, let IPS help you determine which of your non-core competencies should be kept onshore to ensure the success of your knowledge workers.