Domestic outsourcing and offshoring share most risk characteristics. A more complicated chain of control incur when offshoring financial services and related data may create new risks when compared to domestic outsourcing. Offshoring introduces an element of country risk to the outsourcing process. Significant offshoring risk areas include:
• Country Risk
• Operations Risk
• Compliance Risk
• Legal Risk
• Credit Risk
Read my previous post titled "Did Outsourcing Raise Level of Wages?" to get more information on outsourcing.
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