Outsourcing is a major part of most companies’ operations today. But there are many risks in parceling out strategic activities to outside parties. What are the key hidden risks and how can they best be managed? This presentation provides an outsourcing risk typology and illustrates major risks, such as loss of strategic control, brand damage, operational disconnects and service declines. It then explains why outsourcing goes wrong and how to address these challenges, under three headings:

• Deciding whether and what to outsource
• Choosing the best partner and launching the deal
• Managing the relationship and improving performance

Norbridge Partner David Bovet presented Outsourcing: Avoiding Hidden Risks at the Council of Supply Chain Management Professionals’ 2008 European Conference, in Brussels, on April 24th 2008.