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Essay / Outsourcing Case Study - 710
Next, a corporate client needs assurance that an outsourcing provider is prepared to recover from a disaster and restore operations within a reasonable time frame. A corporate client should review, through a third-party company, an outsourcing provider's backup capabilities, recovery procedures, level of data redundancy, and functionality of alternative work sites in the event of environmental risks. Additionally, it is worth checking that an outsourcing provider has a disaster notification system in place to relay status updates so that a client company can receive early warning signals. The key strategy to mitigate risk is to have always open and transparent communication channels between a client company and an outsourcing provider to monitor and resolve conflicts cooperatively. In conclusion, although the optimism generated by seeing the benefits of outsourcing can be a motivator for a company, it is more prudent for a company to identify and evaluate the risks of outsourcing and then to define a risk management plan to counter or mitigate each of these risks.