My main concerns - in no particular order - when outsourcing (and I do do
it!):
1. Privacy - what personal/business data I'm sharing with the outsourcing
partner that might affect me. I'm thinking identity theft, IP theft, misuse
of personal data, credit cards, impersonation, etc.
2. Service levels - are they reliable? are they gaming the number of hours
they charge me for?
3. Competition - will they steal my product and compete with me?
4. Reliability - will they lose interest and disappear in the middle of the
project?
5. Quality - will they produce the quality that I really need or will I find
too late that they're not?

I would like to say that both employer and employee take risks in the process of outsourcing. Let's consider IT outsourcing for example. On the one hand, employers are taking a risk to get low quality products and services. On the other hand employers are taking risk of receiving no money for their work performed. A solution exists anyway. The process of work can be divided into several stages. This method is especiallyrecommeded at the beginning stages. If employer and employee are satisfied with each other they will definately trust each other in the future.

Top 10 risks of offshore outsourcing are as follows. 1. Cost-Reduction Expectations2. Data Security/Protection3. Process Discipline (CMM)4. Loss of Business Knowledge5. Vendor Failure to Deliver6. Scope Creep7. Government Oversight/Regulation8. Culture9. Turnover of Key Personnel10. Knowledge Transfer The more information on above points read here - zdnet.com/news/top-10-risks-of-offshore-outsourcing/299274

I would like to say that unfortunately it is impossible to avoid risks in outsourcing. You can minimize them only. However, some risks will always exist anyway.

The biggest risk is one word: Quality There are different expectaions when it comes to quality when you move to other countries, so you really need to manage this major risk by setting the expectaion and quantify what would be expected quality of the service. Many businesses I know tried outsourcing only to realize that the quality was not at par if it was developed onshore, and ended up moving the operations back onshore. Unfortunately, many times the quality can only be understood at the end of the project.

Think about exactly where you're outsourcing to. 'Offshore' is a blanket term - there's a massive difference between countries. I'm a copywriter in New Zealand - to my U.S. clients I'm offshore, but I certainly provide a much lower-risk service than a random writer from Southest Asia that just slapped up a profile on Elance. Risks can be largely eliminated by the use of an escrow service for payments and by being very clear on what's expected on both sides before work begins. Any decent freelancer will always be absolutely clear on details and show work samples to indicate quality before starting.

I believe that regardles where are you located there is alway risk in quality. You should get to know the Outsourcer and give him small trial work to at least verify his claim on his ability. There are a lot of people regardless ofr country that would like to make a quick buck for nothing. So if yo manage to find a freelancer that really care about the quality of his work then by all means keep him. This is also same with hiring an employee if you manage to hire someone tat is worth it you give him incentive. Freelancer are not that different but ofcources they are cheaper to maintain.

I have been experienced in the organization who hired outsourcing and had been responsibled in the outsourcing companies. The most important step of outsourcing project management is the period of defining requirement. The company's officers and outsourcing company's staffs should work closely and devote time to make most of understanding with these terms of requirement. If the system is large, clearly written terms is recommended for good perceiving of both parties. Set up an intranet site to communicate and publish those terms of requirement is a good thing to do. This step is very important, if both parties are good understanding, the quality of work would be in a good direction. Inspectors will work easier, also checking the job corresponding to all the conditions of the common work declared in those terms of requirement. Hope this guidance will create win-win situation in your business. Orawan i-smartbuy.com Best reviews for consumers