Outsourcing and project risk
A risk category that is not unique to outsourcing, but nonetheless relevant, is project risk. The selection of a suitable vendor, contracting and transition of the service from the own organization to the vendor is typically managed as a project. Some of the standard project risk categories are: Business risk: Is the business reasoning behind the decision to buy sound, independent from emotions and ‘me too’ rational? Organizational risk: Are the relevant stakeholders (e.g. business, senior decision makers, workers counsel) willing to support decision to outsource and able to make the transition from making to buying the service? Execution risk: Can the outsourcing and disentanglement be done on budget and on time? Can the project handle the complexity of outsourcing both business process and IT (hybrid contract) or should it be done in separate projects? Result risk: Will the outsourcing project deliver the business the anticipated results (e.g. services, quality, products)? Which gen...