5 Tips to Mitigate Outsourcing Risks

A few days back, one of my friends was looking for an outsourcing partner. However, he knew that outsourcing is not risk-free. Hence, finding their solutions became his utmost priority, and guess what, he finally found them out. Then, I thought that I must prepare a blog post on this!


Varun Bhagat

2 years ago | 2 min read

Outsourcing to foreign countries has become one of the most popular ways to cut costs and add to profit margins. It’s become so mainstream, in fact, that more than 70% of companies now outsource at least some of their tasks and responsibilities to other businesses. Despite its popularity, outsourcing does come with its own set of risks. By following these five tips, you can mitigate outsourcing risks and make outsourcing work for your business.

1) Know What To Outsource

Successful outsourcing is about knowing which tasks you should outsource, and which tasks are better handled by your in-house team. For example, quality assurance, while important, might be something you want to let a professional company handle. Other aspects of your business may be something you’re fine handling yourself. The key is finding a balance that works for your business model and goals.upfront

2) Stay Informed About Costs

When you hire a team in another country, there is always an exchange rate that can affect prices. The same goes for shipping and transportation of goods. You will want to know about these costs ahead of time so that you don’t get stuck with a large bill at the end of your project. Ask up front how much it might cost you so that there are no surprises down the road.

3) Check on Quality Regularly

It’s easy to cut corners and take shortcuts when you outsource, but in doing so you might not be getting what you paid for. Many companies will guarantee your satisfaction with their work if you check on it regularly. If something doesn’t seem right, don’t be afraid to ask questions—it’s in both parties' best interest that a project is completed correctly. There should be an open line of communication during any business relationship and outsourcing is no different.

Get free IT consultant services

4) Keep Communication Lines Open

Communication is an essential element of any successful business transaction. Be sure to set up proper channels of communication with your outsourcing team so that you can ask questions and get answers quickly. It’s also important to create a level of mutual respect between your outsourcer and yourself. Work together, not against each other, and you’ll have a great outsourcing experience.

5) Be Picky With Who You Work With

Perhaps one of the most common fears surrounding outsourcing is not knowing who you are working with. But it’s important to remember that outsourcing allows you to focus on your strengths—in business and in life—while also taking advantage of talented individuals all over the world. It’s okay to have a firm idea of what skills, qualifications, and past experiences are necessary for whoever will be working with you.


Like any project, outsourcing involves taking a leap of faith. Take your time and consider these five tips before you start outsourcing. Once you’ve done so, you’ll be well on your way to outsourcing success with the help of IT outsourcing companies!


Created by

Varun Bhagat







Related Articles