40 outsourcing risks you need to know now

Outsourcing selection risks

1. Not including enough resources to effectively manage the vendor selection process.
2. Not having the proper internal skill set to effectively manage the selection process.
3. Not understanding or leveraging the benefits a Request for Information (RFI) can have in narrowing the potential provider field before entering the Request for Proposal (RFP) process.
4. Not casting one's net widely enough for potential providers of the service, and thus missing good candidates.
5. Not involving a variety of perspectives in the selection process.
6. Poorly developed and documented service or product specifications.
7. Inaccurate costing of assets that will be transferred to the service or product provider.
8. Not doing business and financial due diligence on potential providers.
9. Insufficient knowledge of service provider capacity limitations.
10. Making the selection process a personal rather than a commercial decision.

View outsourcing management risks