Study Shows most Outsourcing Players do not Manage Associated Risks
Thursday, July 15, 2010 |
In a survey recently conducted by learning-based solutions provider ESI International, it was found out that more than half of outsourcing buyers and service providers are not able to effectively manage associated risks.
Out of the 615 respondents from North and South America, UK, Asia, Middle East, and India, 55 percent said their company is “not very effective” or “somewhat effective” when it comes to risk management. Thirty-five percent said their organization is “effective” and six percent noted that they are “extremely effective” in assessing the risks associated with outsourcing.
The study also reveals that only one-third of organizations define their financial goals to outsourcing partners, while 32 percent said they fail to continually assess outsourced work based on the goals they have set.
“With nearly two-thirds of organizations spending up to half of their budgets on outsourcing, there is a need to refine risk management capabilities in order to positively impact bottom line performance,” ESI International said.