Managing Outsourcing Risks Survey
 
 

Managing the Risks of Outsourcing: A Survey of Current Practices and Their Effectiveness

 
 

 
 
This paper from Protiviti and APICS reviews the results of the recent Outsourcing Risk Management Survey conducted by the two organizations on the APICS website. The purpose of this survey was to examine the risks involved in outsourcing, and to evaluate the effectiveness of outsourcing risk management practices.

Outsourcing generally, and offshore outsourcing in particular, continues to be a key part of many companies' supply and cost management strategy. The strategy has proven to be effective, but brings with it significant risks that must be recognized and managed. In outsourcing, a company is relying on someone else to run certain business functions. If not properly managed, companies may negatively affect their operations and customers.

A product or service can be outsourced, but the risks cannot, and outsourcing activity brings a significant set of risks. Most companies recognize this and respond by adopting a thorough risk analysis process. While risk analysis is a valuable tool, it must be accompanied by ongoing risk management to effectively mitigate outsourcing risks.

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