Reassess readiness plans
A top outsourcing consultancy is advising its clients to reassess the risk of offshoring business-critical processes and services to certain geographies.
In a note distributed this morning, Equaterra has said that businesses relying on overseas service providers should update their risk assessments to make sure they have a readiness plan in place that accounts for all contingencies.
“Terrorist attacks in India in November of 2008 and the more recent announcement of the Satyam financial situation are drawing attention to specific geopolitical and financial risks associated with conducting business in various regions of the world.”
The company said that global sourcing strategies should not necessarily be altered by any one or two individual disruptive events. But it does caution that organisations “should undertake an immediate and thorough review of all existing global services and sourcing contracts”.
That review needs to focus on geopolitical risks, domestic economic markets and employment as well as supplier financial risks, the sourcing advisor said.