Saturday, October 2, 2010

Top Risky Offshore Outsourcing Destinations

Although offshore outsourcing for call center services became widely popular for BPO providers, there are things that can make these advantages turn into a great disadvantage. Like any other offshore investments, there are several key factors that can determine whether or not offshore outsourcing will work for the company or not and these include the outsourcing destination and the government’s support of the country where the BPO requirements will be outsourced.

The risks posed by the outsourcing destination will all depend on the company’s views about risky investment. Aside from the risks brought about by the offshore outsourcing destination, legal issues also play a vital role in the success of the offshore outsourcing venture. So in order to avoid lapses and misconstrued judgments, companies are advised to follow all the regulations implemented in a particular country with regards to offshore outsourcing ventures. So, if you are still in the first stage of planning your offshore outsourcing for call center services, it is a must to know at least some of the risk - prone offshore outsourcing destinations around the globe. By doing so, this can give a clear idea as to whether continue your outsourcing ventures in these countries or establish a contingency plan on as how to face the risks presented head on.

Ten Risk-Prone Outsourcing Destinations
This list is not made according to the level of risk involved but the countries are only included so as the readers will have an idea with regards to the risks involved in offshore outsourcing in these countries.
  • Bangkok, Thailand
  • Bogota, Colombia
  • Jerusalem, Israel
  • Johannesburg, South Africa
  • Rio de Janeiro, Brazil
These countries make it to the top five due to various reasons including; the instability of their currency, increased rate in personal crime due to the lower ratio of police force to the number of the citizens in the city. The threat of terrorism as well as local rebel uprising also plays a major part in determining the level of risks faced by offshore call center services and offshore outsourcing in general.
The following cities and countries also made it to the list of risky offshore outsourcing destination due to minor reasons including climate threats, various geo-political issues, corruption in government, organized crime, and other related issues. These countries include:
  • Manila, Philippines    - climate threats
  • Juarez Mexico    - corruption in the government
  • Colombo, Sri Lanka    -geo - political issues
  • Kingston, Jamaica    - immaturity of the legal system
  • Kuala Lumpur, Malaysia    - environmental issues including pollution
Although the risks presented here do not encourage companies to turn down their plans for offshore call center outsourcing services, it is best to evaluate all the key details with regards to their business objectives and BPO requirements in order for their companies to fully understand the risks they will face and how they would deal with should they decide to continue their offshore outsourcing from these destinations.

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