The risks of outsourcing

Offshore outsourcing is here to stay, but how can firms ensure they aren’t exposing themselves to additional risk when they hand over the reins? By Dianne See Morrison

With IT budgets still under pressure, many financial firms have found the lure of offshore outsourcing hard to resist. The cost savings alone have firms that once considered it a dubious idea to hand over their back-office processes to outsourcing providers now looking at their middle office. Some Wall Street pioneers are reportedly even considering farming out the maintenance of certain front-office functions. Merrill Lynch, one of Wall Street’s biggest proponents of offshore outsourcing