Managing Risks at your outsourced providers

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.

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About Subbu Iyer

Subbu Iyer is an experienced professional in the outsourcing sphere with 20 plus years of experience. His knowledge and exposure to India pure play firms and trends in outsourcing is a force to reckon with. He advises senior leaders on outsourcing and talks regularly at seminars and forums in Asiapac, Europe and North America. His breadth of US experience ranges from working with Silicon Valley start ups to, helping two of Big-3 firms to leverage offshore resources and playing a major role with building outsourcing relationships with top India pure play firms. He lives in sunny FL with his wife and two wonderful kids.

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