Riskiest Locations to Outsource
According to a study by Black Book Research, the fact that we live in an unsafe world has spilled over into outsourcing decisions. When you are outsourcing IT development, insuring data and intellectual protection is crucial, which is why you should be aware of the risks associated with different outsourcing destinations. As the world economic climate has shifted, one of the most challenging decisions you will now have to make is choosing the appropriate outsourcing location and provider. Based on Black Book Research’s study, which evaluated the risks of offshoring, there are definitely some locations you may want to avoid.
The purpose of the study was to assign rankings to major metropolitan locations of outsourcing. Researchers assessed the safety and security of outsourced operations by analyzing downstream risks of offshore outsourcing in 2009, evaluating supplier side risk, developing a decision model for outsourcing buyers regarding the ramifications of offshore outsourcing’s downstream risks and providing insight into these risks.
Researchers used online surveys and interviews of over three thousand corporate development leaders and experience to assign rankings to offshore locations based on risk perception. The following is a brief list of locations that researchers found to be the riskiest as far as unsecured and unprotected networks, infrastructure, technology and telephone and legal system immaturity:
• Bogota, Colombia
• Bangkok, Thailand
• Kingston, Jamaica
The locations that were considered the safest in offering secure and protected networks, infrastructure, technology and telephone and legal system maturity for outsourcing included:
• Toronto/Montreal, Canada
• Singapore, Singapore
• Dublin, Ireland
The Outsourcing Dangerously report by Black Book gave some tips to mitigate the risks of offshoring, such as performing a risk analysis and being aware of where your processes and data are outsourced. It was also suggested that threats could be minimized by identifying industry consultants who can assist you in an offshore crisis.
A&E Consulting can help you choose the right outsourcing location and partner. It is our goal to provide each client with a personalized solution that minimizes the time of implementation and maximizes the return on investment. Contact us today at 661-200-3612.
Tags: it outsourcing, offshore destination, offshoring, outsourcing