Threats
Risk is the major drawback with Business Process Outsourcing. Outsourcing of an Information System, for example, can cause security risks both from a communication and from a privacy perspective. For example, security of North American or European company data is more difficult to maintain when accessed or controlled in the Sub-Continent. From a knowledge perspective, a changing attitude in employees, underestimation of running costs and the major risk of losing independence, outsourcing leads to a different relationship between an organization and its contractor.
Risks and threats of outsourcing must therefore be managed, to achieve any benefits. In order to manage outsourcing in a structured way, maximizing positive outcome, minimizing risks and avoiding any threats, a Business continuity management (BCM) model is set up. BCM consists of a set of steps, to successfully identify, manage and control the business processes that are, or can be outsourced.
Another framework, more focused on the identification process of potential outsourceable Information Systems, identified as AHP, is explained.
L. Willcocks, M. Lacity and G. Fitzgerald identify several contracting problems companies face, ranging from unclear contract formatting, to a lack of understanding of technical IT- processes. BPO is a sector which is processed business from outsources.
Read more about this topic: Business Process Outsourcing
Famous quotes containing the word threats:
“Do not extort money from anyone by threats or false accusation, and be satisfied with your wages.”
—Bible: New Testament, Luke 3:14.
John the Baptist to Soldiers.
“Southerners, whose ancestors a hundred years ago knew the horrors of a homeland devastated by war, are particularly determined that war shall never come to us again. All Americans understand the basic lessons of history: that we need to be resolute and able to protect ourselves, to prevent threats and domination by others.”
—Jimmy Carter (James Earl Carter, Jr.)
“Among the best traitors Ireland has ever had, Mother Church ranks at the very top, a massive obstacle in the path to equality and freedom. She has been a force for conservatism, not on the basis of preserving Catholic doctrine or preventing the corruption of her children, but simply to ward off threats to her own security and influence.”
—Bernadette Devlin (b. 1947)