Introduction

Global Sourcing (GS) gained significant momentum over the past few years and now comprises a portion of many of today's outsourcing transactions. With this rise in Global Sourcing adoption, the risks related to outsourcing have become significantly more complex for companies to understand and manage. The management of risk is a key focus of most companies today. This report will assist buyers and suppliers address the risks associated with outsourcing and offshoring, and share assessment and mitigation mechanisms to manage risks. It will provide buyers with analyses and information on the various types of risks, a framework to assist in better understanding the risks, approaches for mitigating the risks, and examples of tools which can aid in the ongoing management of these risks. 

Scope

• This report is applicable to all geographies and industries
• This report is applicable to both buyer and supplier organizations
• Individual risks can vary widely in different situations and the management of risks is situation dependent.غ As such, this report focuses on illustrating examples of risks and providing multiple mitigation techniques/tools which could be leveraged to address the particular risk 

Contents

This report analyzes outsourcing risks in today´s environment and how the risks have been impacted by the mainstream adoption of Global Sourcing. Management of risk has become increasingly complex and a key focus of many companies today. This report will assist management teams in developing a best-practice risk-management approach to practically manage risks.

• Create a pan-organizational picture to illustrate risk creation and organizational dependencies
• Identify and detail the key risks at an individual and overall enterprise level
• Provide a mechanism to measure and prioritize risks (e.g., probability-impact analysis)
• Highlight the organizational and process changes and tools required to mitigate and continuously monitor risks (e.g., creating new positions or governance organizations)
• Highlight key considerations and differences for supplier organizations (e.g., managing risks for customers in addition to own risks)