What You Don't Know Can Hurt You

More and more attention is focused on the potential risks of outsourcing and offshoring due to high profile cases such as the massive accounting fraud at Satyam Computer Services in India.  Companies looking to accelerate expense reduction in the face of dwindling revenue are increasing their exposure to a variety of risks through business process outsourcing ("BPO").  Here is a related observation from a recent article in CFO magazine.

Experts predict that recent events will spur more-comprehensive scenario planning regarding potential offshoring vulnerabilities, including performance problems, power outages, terrorism, and fraud. "It's causing a lot of people to pause for a second and say, 'Oh my God, there are more unknowns and risk than I thought,'" says Robert E. Kennedy, executive director at the University of Michigan's William Davidson Institute, and author of a book about offshoring called The Services Shift.

How well do you know your BPO partner and the potential risks associated with your relationship?  Wheelhouse Advisors can help build a risk assessment framework to provide the necessary insight to manage a successful relationship.  Visit www.WheelhouseAdvisors.com to learn more.