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Outsourcing Partnerships and Strategies for Minimizing Risk

Why do so many outsourcing partnerships fail? What might have caused the failure? What role did information technology play in the failure?

What strategies can a chief information officer employ to minimize the risks of an outsourcer failing to deliver as contractually obligated?

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It would appear that the main reason that so many outsourcing partnerships fail, is due to miscommunications between the outsourcer and the domestic business. One reason that might be the cause of these failures is the language barrier between the domestic business and the outsourced business entity, which can result in a variety of difficulties in achieving expeditious and efficient business arrangements between the two organizations. The frustration that can be caused due to these language barrier problems can lead to a breakdown in coordination between the two organizations, and ...

Solution Summary

The Solution identifies two reasons why an outsourcing partnership may have difficulties and the importance of information technology to ensure success. The chief information officer's role in minimizing risk is discussed as well.