4. Handling BPO Risks
Certain risk factors accompany all BPO projects. If you have problems in these areas, have a plan
to stop the losses before they become threatening. These risks are:
• Risks to your human capital, including knowledge and talent.
• Risks associated with designing, executing and operating the project.
• Risks that your intellectual property may leak to your competitors.
• Risk that your vendor might use what it learns to become your competitor.
• Legal risks and litigation due to badly written contracts, unmet SLAs, HR issues or more.
• Risks that your vendor may not meet its commitments, may be purchased, may violate HR laws or may even go out of business.
• Risks that key project components may change and destroy your value proposition.
• Unforeseeable, uncontainable risks due to natural disasters, political change or epidemics.