Question

You have run into a problem with the website migration project. This snag will require you to outsource a portion of the project (the development of application modifications to enable the website to function properly in the cloud) to another firm. What will be your process for procuring this service? What are some of the risks associated with outsourcing? Of the risks you listed, which outsourcing risk is most important to address? Why? After posting your response

Answer 1

Answer: The process of procuring this service will be to establish the vendors that can manage to provide such services. After establishing the vendors that provide such type of services, an assessment about the price and quality of their service along with the geographical location of the business needs to be made. Based on all these factors right vendors that offer the best fit to all these factors needs to be established. Some of the risks that are associated with this outsourcing are like, the vendor may not actually have resources and skills to handle this function, the vendor may steal the confidential information about the project and this act will prevent the outsourcing firm from developing the ability to handle such issues. Apart from these outsourcing at times may also result in coordination problems that may result in the failure of the entire project. The most important risk that requires to be handled is of the inability of the vendor to manage the project. It is therefore very important that the companies before such outsourcing should establish the past record of the vendor in handling such type of works. A wrong selection of vendor will ruin the entire project.