IT outsourcing is huge. We are talking about the one field of activity that involves the most possible outsourcing. We constantly see big and small IT companies that are using outsourcing in order to generate a bigger income and get jobs done faster or better. The biggest example we can give has to be RentACoder.com. If you visit that web site you will be surprised to see how many projects are being outsourced daily only through that site in the field of IT. Now the problem is that although outsourcing can bring in a lot of benefits, it can also cause problems and loss of money. There are certain IT outsourcing risks involved that always have to be considered before working with any third party company or individual. In this article we will try to discuss some of the most important geographical risks of outsourcing IT.

First off, when you outsource to a company that exists in another country we have to think about politics and laws. The politics aspect is pretty easy to understand as you have to look at the stability of the country and whether or not there is civil strife present. You might also need to consider about visa and travelling. Research whether or not there are programs between the 2 involved countries that you can benefit from. Next you have to think about laws. See whether or not there are problems with legal activity support. In most cases the biggest risks of outsourcing to another region are linked with legal aspects. Think about taxes and the easiness of setting up everything.

The good news is that most geographical risks of outsourcing IT can be dealt with. What you need is a good outsourcing strategy that will consider every single problem that can appear. It is not at all hard to do but you need to learn how to do it right. For instance, a contract needs to protect you and offer certainties that all is done properly. In the event that the end result is not what you need, you have to be protected. It is kind of difficult to go after someone that lives in another country. It would cost you money to get compensated for anything you lose. This is the biggest possible problem that a company has to think about when outsourcing IT. In order to do this you have to be protected at all times and do everything right at all times. Sometimes there is a need to hire a specialized company to do this, although we recommend that you consider learning everything yourself as it is not at all that difficult.