Offshore outsourcing: 3 underestimated risks

Tips on addressing the risks of offshore outsourcing

By Karine Schomer for Troy Media

When a company decides on an offshore outsourcing strategy, due diligence and risk assessment are a normal part of the process. But systematic attention to the cross-cultural dimensions of risk assessment is still rare.

Identifying and addressing this kind of “soft” risk factor tends to be neglected in favour of the more easily identified “hard” financial and legal factors. Yet repeated research shows that cultural mismatch and failure of cultural integration lead to poor strategic alignment, communication failures, and problems in execution.

Three distinct cross-cultural risk factors can have a critical impact on the success of an offshore outsourcing relationship. The first is commonly recognized, the second tends to receive lip service and the third tends to be unseen or avoided.

 

Read more at: Beacon News

 

 

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