Unfortunately there is simply no activity we can do that does not come with risks involved. The problem is that we rarely see some risks until we are directly faced with them. This is especially true when talking about IT outsourcing risks as there are so many factors involved we can easily make mistakes without even realizing they are done.

Why is It Important that we think about IT Outsourcing Risks?

We can say that there are 3 important aspects linked with IT outsourcing risks. We are talking about costs, morale problems and business problems. It is always important to have a close and open relationship with your vendor. Money can be lost if the price is not negotiated properly or the wrong team is hired and the job is not performed properly. Moral problems can easily appear and can be linked with a lot of possible issues and at the end of the day your business can suffer.

What IT Outsourcing Risks Must We Consider?

The answer to this question is very complex and the truth is that it varies a lot based on a multitude of factors. We can say that there are 3 main areas of IT outsourcing risks you have to consider:

• IT Project Outsourcing Risks
• Location Risks
• Operational and Infrastructure Risks

The first step needs to be a good understanding of your geographical risks. You must be aware of the taxes and local policies towards outsourcing. Also, it is equally important that you know the country of the person you are hiring. There might be legal complications that have to be taken care of. All this can easily be handled by a good outsourcing strategy being built before you actually consider hiring someone. Project risks are different from project to project and from one field of activity to the other. This can only be assessed properly by the people that are taking care of one project. For instance, if you are building a web site and you need a flash movie intro built you will need to consider the fact that the time frame needed for it being done will be longer than you think.

IT Outsourcing Risks are not to be taken lightly. The truth is that the biggest problem stands in identifying the risks involved in your projects and it is a shame to see that a lot of people have a problem with this. In such a situation a lot of time and money can be lost. We do recommend that you seriously consider thinking about your outsourcing strategy and building it properly before you even start hiring people.