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Engage outsourcing contractors and for contractors themselves

We see a growing share of steps in the product supply chain being outsourced. What might some risks be for firms that engage outsourcing contractors and for the contractors themselves?

What similar outsourcing developments have we seen with the financial supply chain? What might the risk issues be here

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The risks for engaging in outsourcing contractors:

In the present time the norm of outsourcing has tremendously increased. This is because the large organizations have multiple tasks to undertake with minimal time or the know how to undertake them. When an organization has decided to outsource their services they stand a chance of gaining from the contract like the saving of time of the organization so that other operations of the organization can be undertaken (Penttila, 2010).

But some risks emerge in the act of giving some valuable organizational tasks to be undertaken by other firms. The loosing of important company information to outside persons might create risks of exposing the operations of the organization to their competitors. The other risk that the organizations can face is the getting of work that has not been done well. This leads to the potential of losing productivity of the company and a bad image being created for the organization when the production dates are delayed. The other risks that can be faced ...

Solution Summary

The risks for firms that engage outsourcing contractors and for contractors themselves are examined.