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Think of Risk Management as Competitive Advantage

Whether buying or selling outsourced products or services, organisations cannot afford not to have a risk management plan in place. Assessing and responding to risks of outsourced projects directly impact an organisation’s financial and operational performance, making risk management expertise essential, for both buyers and sellers of outsourced projects.

Research shows that although more than 75 percent of organisations carefully scrutinise vendors’ technical abilities, they seldom ask for, or review, the vendor’s ability to manage risks. In our view, including one’s ability to assess and manage the risk of delivery on an outsourced project would move your proposal to the head of the pile; and, those that write evaluation criteria should definitely be looking for the vendor’s ability in this area.

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