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American law firm Morgan, Lewis and Bockius has published a blog entry on the National Law Review casting some doubt on the viability of outsourcing to Ukraine in the current climate.
It cites figures from the Everest Group that suggest the outsourcing industry in Ukraine has reached a quarter of a million employees by growing 10% per year, but also mentions Forrester Research’s warning that anyone outsourcing to the area should put a risk plan in place.
“When negotiating outsourcing agreements, customers should consider accounting for geopolitical risk by including data center redundancy and relocation provisions,”
the entry continues.
We’d agree with all of that, but would caution singling any particular territory out because it is in the headlines.
There’s almost always an agenda behind the media, whether it’s due to British interests being represented in an area or because of some historical connection between the UK and another area (for example we’re hearing plenty about the terrible events in Iraq because we had an active part in creating the circumstances that made them possible, frankly; a quick Google tells you that there are people out there who’d warn equally about Kashmir, Kenya and other places the casual reader might not have identified as trouble spots).
Of course people should have a risk plan in place for everywhere they outsource to – not just because of current circumstances but because circumstances can change.