List the risks of outsourcing and briefly explain three of them
The risks of outsourcing are loss of control, benefits outweighed by long-term costs, and no easy exit. Loss of control includes the vendor being in the driver's seat, technology direction, potential loss of intellectual capital, product fixes, enhancements in wrong priority, vendor management, direction, or identity changes, and CIO superfluous. Benefits outweighed by long-term costs include: High unit cost, forever, Paying for someone else's mismanagement, In time, outsource vendor is de facto sole source, and may not get what you pay for but you didn't know. No easy exit includes: Critical knowledge in minds of vendors, not employees, and expensive and risky to change vendors.