You are going to outsource: what are points of attention for risk?

Author: Manu Steens.

In this post I write my own opinion, not that of any organization.

In a previous blog I wrote about the strategic risks of outsourcing tasks of the organization. Now suppose that you still need outsourcing despite those considerations, e.g. because you have a shortage of employees. For example, because of the war for talent. Then there are a number of things that must go through your mind beforehand, factors such as quality, closing SLAs, safety and security, data protection. To this I add the fact that your investment in outsourcing must yield, so also ROI (Return on Investment), sometimes RO(S)I (Return on Security Investment) and nowadays also more and more VOI (Value on Investment). The factors I cite here are not exhaustive. These are just a few (more important) examples.

The challenging thing is to see these factors in combination with each other. That number of combinations increases quadratically. With these combinations you ask yourself a number of questions and try to answer them. The questions, we can give some of them (in a non-exhaustive list). The answer often depends on the organization on the one hand, the consultant and supplier on the other, or a combination of both. So that’s case-specific.

That is why we prefer to give the points of attention here in the form of questions. What is important depends on the situation and on the appreciation of the reader. Some questions are relevant in multiple places. We opted for a minimal repetition.

See document attached

Manu Steens

Manu works at the Flemish Government in risk management and Business Continuity Management. On this website, he shares his own opinions regarding these and related fields.

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