Outsourcing Directory

Outsourcing Risk Mitigation

Political stability is a real risk when outsourcing offshore.  Although there may be an analogy between the rise of a middle class due to better employment opportunities, and the stability of the governments of those countries, there isn’t always an analogy between the rise of outsourcing service employment and the appropriate infrastructure necessary to support those services.  In 2007, in the developing world, basic infrastructure such as basic telephone service through the use of fiber optic cable remains less stable and certainly less available than cellular phone service for most people.  Other infrastructure needs such as appropriate building codes, highways, sanitation and similar needs remain outdated.  Thus, the reason for mitigating location risk is that in the event of a natural or political disaster,  multiple centers, previously cross-trained, will step in to meet the required service levels.  At the end of the day, we need our services performed, and the best way to achieve our goals of continuous service and the best way for our outsourcing service providers to meet our required service levels, is to spread the risks around.

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