Jan 24 - The global information technology and business process outsourcing market is approaching $500 billion and is growing rapidly. In today’s global economy, investments in outsourcing and offshoring initiatives have never been higher, or more critical to organizational success. To help companies address today’s significant outsourcing and offshoring risks and maximize the value of their outsourcing and offshoring strategy, Deloitte has published a new whitepaper titled, “The Risk Intelligent Approach to Outsourcing and Offshoring.”
Corporations are facing dramatically increasing risks as they rely more than ever on other parties and/or offshore entities for a growing number of business and information technology processes. The paper, the eighth in the Deloitte Risk Intelligence series, identifies several trends that have increased outsourcing and offshoring risks:
“To deal with such complex and dynamic risks, companies must employ a Risk Intelligent approach to guide decision making throughout the outsourcing/offshoring life cycle,” said Mark Layton, global leader for Deloitte’s Enterprise Risk Services practice. “Aligning objectives, risks and controls throughout the outsourcing/offshoring lifecycle enables organizations to identify, assess, prioritize and mitigate outsourcing/offshoring risks at the right stage.”
The Deloitte report identifies the following critical stages within the lifecycle of an offshoring/outsourcing relationship and addresses in detail the most important risks around each:
“Many outsourcing and offshoring initiatives fail to live up to their potential or the expectations of the parties. Even worse, a fair number of them fail outright, leading the company to either pull the operations back in house or to start anew in the search for a reliable, mutually beneficial partner. A Risk Intelligent approach can help organizations realize the expected benefits and improve relationships among constituents impacted by outsourcing/offshoring,” said Peter Lowes, Outsourcing Advisory Services leader, Deloitte.
“The Risk Intelligent Approach to Outsourcing and Offshoring,”along with the previous whitepapers in the Risk Intelligence series, may be accessed free of charge at www.deloitte.com/RiskIntelligence. Mark Layton and Peter Lowes are available for interviews and briefings.
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