Readiness Assessment for Outsourcing Decisions

Functionality Risk

Risk that the system may not fully meet the ultimate users' demands due to the relative complexity of the user requirements and interfaces

Internal Political Risk

Risk that the project would be compromised because of antagonism within the organization, related to changes in the existing power balance or status quo

Project Management Risk

Risk that the company would not be familiar with the processes for managing expectations and deliverables in a distributed development environment

Financial Risk

Risk that the costs would exceed budget, or that the result would not deliver anticipated benefits

Technical Risk

Risk that the scope of the project would be beyond the technical capabilities of the hardware, software, or available personnel

Security and Compliance Risk

Risk that company data or business continuity may be compromised

Geopolitical Risk

Risk of political unstability in a developing country where business critical applications or data reside


Delle Donne, Brian. "Is Outsourcing Safe for Your Company?" Continuity Insights, January/February, 2005. Pp. 48 - 51.