Offshore Outsourcing also involves risks.It would be appropriate to consider risks ,once the risks have been identified they should be assessed and programs should be put in place to mitigate those risks.
Risks in software development outsourcingSome of the Software development outsourcing risks include:
- Cost and Time over-runs for the project:
- Due to selection of wrong offshore outsourcing vendor that lacks expertise for executing that particular offshore project
- Cultural mismatch with outsourcing partner and
- Political or other instability in outsourced country.
- Data privacy
- Intellectual property rights
- Legal Standing and Access to Arbitration
- Loss of business knowledge
- Turnover of Key Project Personnel
Finally, Successful risk management depends on diversification of sourcing. This implies load balancing between suppliers, or their facilities, in different countries, effective management of multiple teams, and dependencies on a variety of telecom providers.
Read more about Managing the Outsourcing Risks
