The rise in the use of outsourcing has been dramatic, exponentially raising the potential gains for all stakeholders. But it also has raised risks and brought on newer, and varied, risks, which can be difficult to fully identify and assess.
Still, the higher risks are no reason for companies to turn the clock back on outsourcing or give up on further gains. The need of the hour, instead, is a proactive, and effective, risk monitoring mechanism and strategy.
This Neo Insights evaluates ways to monitor, predict and manage Global Sourcing & Outsourcing risks. In this paper, we assess the causes and the consequences of these risks, before presenting a model risk-management system that can monitor the risks, predict possible future occurrences of these risks and pro-actively manage them, ensuring buyers and suppliers can sustain, and even further, the gains from outsourcing and offshoring.