Risk Management especially where areas are prone to Natural disasters, such as the 2015 South India floods, Mumbai floods in 2005 and 2017, Philippines in 2018 are just few examples are the factors driving businesses to address the risks related to outsourcing. Multiple site visits by clients throughout the year to inspect work quality and to review disaster recovery and business continuity plans should be the norm. It is best to test BC/DR by intentionally, and without notice, “pull the plug” to see if the provider can quickly re-route work to delivery centers in other locations.
Security is another area where providers should be concerned that needs to be addressed with a mix of providers own security and specialized security and more so during the periods when the threat perceptions increase. Routine checks beyond just badge swipes and equipment based on local conditions have certainly become necessity. Privacy and security of client data and their personnel is important as well. Most of providers have more security than in developed countries just for their facilities to ensure confidence but one breach is it takes to inflict damage.
Routine audits, certification by credentialed partners, documenting checks conducted – deficiencies found and addressed provides confidence as well.
Its important for all clients be it small medium or large to make sure the terms are clear on the contract to avoid surprises.
Managing risk is not one time activity annually this should be a ongoing exercise to meet required needs and enhance as required.