40 outsourcing risks you need to know now

Outsourcing implementation risks

1. Not establishing an outsource relationship that has sufficient flexibility to deal with business fluctuations.
2. Initiating an agreement with a service provider that limits flexibility in the future.
3. Having an unrealistic timeline for any of the steps of the outsource process including start up.
4. Poor implementation planning with respect to timing of transition to service provider and demands on the organization.
5. Underestimating the time required to negotiate a service agreement.
6. Not fully defining an employee transition plan.
7. Not getting the operational issues resolved in the service agreement before moving into the legal aspects of the agreement.
8. Inadequate planning concerning information systems and interfacing with the service provider.
9. Insufficient technology development before implementation.
10. Not training the provider on critical elements of the company product line or service expectations.

View outsourcing selection risks