Corporate Strategy | "Risks in the BPO Industry

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Corporate Strategy | "Risks in the BPO Industry - The Indian Framework"

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Risks in the BPO Industry - The Indian Framework

- by Devroop Dhar *

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Page - 9

Impact of the Risk

The matrix given below depicts the impact if the threat posed by this risk comes true -

	From the Perspective of the Company Outsourcing the Work	From the Perspective of the BPO Organization
Socio Political Risk	The biggest impact this may have is inability to outsource due to socio-political pressure back home, or certain government regulations	The biggest impact that it may have is that it can be detrimental to the whole existence of the BPO organization, if parent companies decide not to outsource work to Indian BPO organizations
Information Security Risk	The biggest impact that this may have is the loss of customer base and business potential. Also, there may be a negative impact on corporate brand. The parent company may lose confidence in the BPO company, as well as the complete process of outsourcing. It might decide to move its outsourcing processes from India, which would mean a big blow to the Indian BPO industry. Similarly, it might decide not to outsource its work, and thus may lose certain cost effectiveness in return.The company can also get itself drawn into costly litigations and court battles over this issue, if its customers decide to knock at the door of the law agencies.	The biggest impact that it may have is that it can be detrimental to the whole existence of the BPO organization. The negative impact on the brand image might make it difficult for the company to retain existing customers, or acquire new customers, or to enter new geographies and domains. The parent company can also drag the BPO organization into costly litigations and court battles over this issue to indemnify the losses accrued.

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* Contributed by: -
Devroop Dhar is a Management Consultant with PricewaterhouseCoopers in Mumbai. He has almost 5 years of experience in the field of Consultancy, Project Management, Six Sigma. He is an alumnus of IIM Kozhikode, specializing in Finance & Operations. He has also worked with TCS and Bristlecone in the past, and done an internship with EXL Service. He also holds a BE Degree in Production Engineering from Jadavpur University, Kolkata.
All views expressed in this article are the author's, and not of his employer.

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