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Abstract Outsourcing is a very well-known practice among both private and public companies and is an important element in business strategy. When a firm wants to focus its resources on fundamental capabilities, they take the decision to outsource some of their services that are not very profitable. Many companies decide on to outsourcing services for a variety of reasons. The organizations that choose to outsource must consider the benefits and risks very wisely and they have to take measures to mitigate the related risks and organize their personnel about the benefits of outsourcing.
Keywords Risk, outsourcing, advantages, disadvantages
JEL codes: G3
1. Introduction
In the current volatile business environment, effective and efficient day-to-day risk management is critical to an organization's people, processes, and long-term viability. The risk management department serves a vital role given its unique position within an organization at the crossroads of the operational, financial, accounting, and strategic functions. A proven, structured approach to assessing and developing a risk-aware culture-the core responsibility of a risk management department-can help to mitigate risk across an entire organization.
Outsourcing refers to the way in which companies entrust the processes of their business functions to external vendors. Examples of frequently outsourced activities consist of: sales and marketing services, IT services, human resources services, delivery, logistics and distribution services, finance and accounting services and procurement services.
The outsourcing activity has become one of the most extensive and profitable areas in the world. In a crisis context...