Outsourcing and off-shoring could pose serious risks to Australian businesses, Deloitte has found.
Piracy, security breaches and intellectual property theft are some of the risks of outsourcing and off-shoring business functions, a Deloitte whitepaper has warned.
The worldwide information technology and business process outsourcing market is worth almost $500 billion, according to the global firm.
"Many outsourcing and off-shoring initiatives fail to live up to their potential or the expectations of the parties," Deloitte outsourcing advisory services leader Peter Lowes said.
"Even worse, a fair number of them fail outright, leading the company to either pull the operations back in house or to start anew in the search for a reliable, mutually beneficial partner.
"A risk intelligent approach can help organisations realise the expected benefits and improve relationships among constituents impacted by outsourcing/off-shoring."
A growing trend identified companies have greater reliance on offshore entities not just for specific projects and back-office functions, but for core business processes.
Risks identified included increased competition for global talent has contributing to shortages of qualified talent.
Volatile political environment in some popular offshore locations can hamper business, the paper warned.
Retirees face the risk of running out of money. We asked Macquarie Funds Group's head of longevity risk solutions Andrew Robertson how this can be avoided.... Watch»
Many in the industry would have been bogged down in submissions given the plethora of government reviews. Next year it will be the government's turn to act on the reviews. ... read more »
Home delivered!
Daily news, weekday mornings
Get the day's news delivered direct to your inbox. Register here (it's free!) and choose 'yes' to receive the InvestorDaily newsletter.
