EBK BUSINESS DRIVEN TECHNOLOGY
EBK BUSINESS DRIVEN TECHNOLOGY
7th Edition
ISBN: 8220103675451
Author: BALTZAN
Publisher: YUZU
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Chapter 18, Problem 4MBD

Explanation of Solution

Challenges of Outsourcing:

  • The challenges of outsourcing includes:
    • Length of contract:
      • It becomes difficult to break contract.
      • It is difficult to forecast business requirements for several years.
    • Loss of confidentiality:
      • It may lose confidential information to wrong hands.
    • Threat to competitive advantage:
      • The trade secrets of company may get revealed.
      • The vital information regarding business operations are shared among different entities.

Cultural, language and legal issues:

  • The cultural challenges includes:
    • Gender tolerance differences, religious beliefs, customs
    • Social attitudes
    • Work style difference and business relationships
    • Location and time zone dealings
    • Difference in labor cost
    • The steps to mitigate these risks include:
      • A common code of conduct should be generated while outsourcing.
      • Time zone should be framed based on client side.
      • The work style should be clearly mentioned...

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