Outsourcing risks
Unfortunately outsourcing comes with few disadvantages as well. It comes with plenty of security risks since outsourcing agency employers have the insight in lots of sensitive company documents. Sometimes this even includes client’s credit card numbers, and company’s trade secrets.
Many entrepreneurs get blinded with outsourcing benefits, which makes them forget all the risks that are tied to this practice. They think that outsourcing is going to solve all of their company’s problems, which simply doesn’t happen. Another characteristic of today’s startups is to rush into an outsourcing deal, without thoroughly checking the outsourcing supplier. This can be very dangerous, because after all, they are enabling these people to see lots of company’s sensitive information.
Choose your outsourcing agency wisely
Since choosing the right outsourcing agency will provide you with years of harmonious business, taking your time and conducting elaborate researches when choosing an outsourcing agency is definitely worth trying.
These are some of the major parameters good outsourcing agencies need to satisfy:
1. Their workers speak good English;
2. They practice agile methodology for IT tasks;
3. They have experienced and knowledgeable staff;
4. They have good track record;
5. They have solid hierarchy structure;
Conducting risk assessment
This should be the number one test for proving agency’s potential. Before the contract is signed, company experts need to check agency’s credentials and the way they do business. Good risk assessment enables entrepreneurs to enter outsourcing software without hidden risks and costs.
Establishing secure connections
Secure connections are one of the most important prerequisites for successful cooperation between companies and outsourcing agencies. These are especially important in case these two parties exchange sensitive data online, which is the case in most outsourcing deals. In most cases establishing reliable and secure connection is agency’s job, and they should introduce advanced tech solutions for conversation, file sharing and support. This means that outsourcing agencies need to cloud storages, servers, remote server monitoring, etc.
Losing competitive edge
This is one of the biggest risks, when it comes to outsourcing. Companies that completely rely on this practice become very dependable and they are losing their competitive edge during time. That’s why companies should know where they competence lies and keep that sector away from outsourcing.
High Expectations
There are plenty of entrepreneurs who expect miracles from outsourcing professionals. They think outsourcing agencies will take care of everything, and when they receive results they feel deceived and disappointed. This way entrepreneurs close their doors to many great outsourcing agencies.
To prevent this from happening company management should closely inspect each outsourcing offer and become introduced with all the difficulties and risks this process can bring. With this in mind managers will have much more realistic expectation when it comes to outsourcing process, and they will be able to find good agency, with agile and professional working staff.
Exclude intellectual property and other sensitive information
Outsourcing agencies should never receive with company’s or client’s intellectual property that in this case involves trade secrets and business plans. When it comes to intellectual property dangers doesn’t only come from outsourcing agency, but from many different cyber criminals who can hack agency’s databases to obtain these valuable information.
Customer’s credit card details also shouldn’t be outsourced to an independent agency. This practice comes with the same risks as sending intellectual property, since both agency employees and third-party hackers can enter the system and steal sensitive information. When it comes to credit cards they can use it for fraudulent purposes that involves conducting some sort of credit card scams. If they succeed in pulling this scam, company reputation might plunder in no more than 5 days.
With such a strong competition in developing countries, outsourcing market is one of the most competitive ones. Many experts say that knowing local customs and culture can help entrepreneurs big time in finding the right outsourcing partner. In our opinion that is not the crucial, but it definitely plays certain role in establishing good connections with outsourcing agencies.
