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Started by : Darshana Sawant, HR Manager, Leading IT services company   07 15 2010 10:53:20 +0000
Industry : Human Resources (HR) ConsultingFunctional Area : Outsourcing(Operations)
Activity:  27 views;  last activity : 01 10 2011 20:32:19 +0000

Nearly two thirds of organizations spend upto half of their budgets on outsourcing but it is realized that, it is essential to look into risk management capabilities to have an effect at the bottom line performance.

Handful of organizations, who buy or outsource services, possess the skill of managing associated risks. So users, why do you think Organizations fail to manage outsourcing risks?

 
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1 Organizations lack foundational skills and processes for outsourcing
2 Lack of preparation
3 Lack of awareness

Organizations lack foundational skills and processes for outsourcing

idea posted by Darshana Sawant HR Manager, Leading IT services company

Today's organizations lack foundational skills and processes with respect to outsourcing. They feel that they are vivid in their articulation and in defining financial goals to outsourcing partners. Many even feel that their organization evaluates outsourced projects in time, when it comes to their organizational goals and objectives. So I feel this lack of foundational skills and processes for outsourcing has to be managed.

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Many companies lack the skills and knowledge about outsourcing. It's all about planning and proper management. Many of them failed to anticipate the future or possible risks and plan for them. Many of them failed to clearly identify their objective, lack measurable goals, or an action plan. A really big problem is that many of the companies that outsource have unclear expectations and they really don’t do very well in selecting an outsourcing partner. Many companies need to improve on their approach to outsourcing. In today’s business world outsourcing is still a strategically viable & beneficial option.

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The basic nature of outsourcing is such that it requires sound processes at both the fundamental organization level as well as the project level. If either the processes or the implementation and adherence to these processes are weak, they generate further risks to the outsourced project and consequently raise alarm levels at client level.

It is not enough to have good processes on the books. It is more important to have a method of working that is correctly reflected in the approved processes that are in the books. Transparent operation and CORRECT levels of communication with the client ensure that risks are minimized in outsourced projects.

For what it is worth I speak from experience of having managed outsourced projects for more than 20 years.

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Lack of preparation

idea posted by Mohammad Bakhsh Project Leader/Managing Consultant, Freelancer

Any approach pursued half heartedly is doomed to fail.The outsourcing per se is a good idea,but managing it requires pointsman's ability

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Lack of awareness

idea posted by Diwakar Tiwari Sr. Manager, THE Arvind LTD

Due to lack of experience personal and awareness new organization coming in out sourcing business don't achieving required result.

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