Outsourcing Risk Assessment

Contracting out of services comprising organization’s business processes to an external provider on a continuous basis is called outsourcing.

Organizations are ever more compelled to contract services to third parties (external partners) i.e. to outsource a part of their business processes, particularly in the ICT field. Due to the ever increasing business dependency on ICT technologies, along with the increasing complexity of ICT processes, it is becoming almost impossible for organizations to maintain the necessary ICT services level, because this requires professional and highly trained employees, expensive and sophisticated ICT equipment etc.

In case of outsourcing, important business functions are performed by third parties i.e. outsourcing partners. It is in such environment essential to analyse, evaluate and, if necessary, decrease the risk of such business operations form.

Outsourcing risk assessment procedure takes into account:

  • The capability of the service provider to ensure service provision in accordance with the organization’s objectives,
  • Reliability, economic sustainability, and competence of the provider,
  • Monitoring service provision by the organization,
  • Adequacy of organization’s employees for monitoring the provider,
  • The value of business processes that are outsourced,
  • The possibility of insourcing, bringing the service performance back to the organization.