Monday, March 02, 2009

The Dangerous Back Alleys of Outsourcing

In an interesting study done recently by The Brown-Wilson Group, popular and emerging outsourcing destinations are ranked based on their security. The study, 2009: The Year of Outsourcing Dangerously, ranks cites not just on their physical security, but on other tangible issues like political instability and levels of corruption.

The study ranks Singapore, Dublin, Santiago, Krakow/Warsaw, and Toronto/Montreal as the safest among its top 25, and Kolkata, Hyderabad, Bangalore, Hanoit and Chennai as the riskiest of the bottom 25. It's interesting to note that four of the five worst are in one country, India, which has been the darling of outsourcing for the better part of the decade.

The study, which was also reported in Computer World, says businesses are now looking not just at cost, but also at security, before running offshore for development projects.

Some ways to mitigate the risks, according to the study, include doing a thorough analysis of the proposed offshore location and putting together crisis and disaster recovery contingency plans -- just in case the worse happens.

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