1. Risks from employers
A. the risk of outsourcing decision. Although outsourcing has many advantages, not all enterprises are suitable for outsourcing. Before deciding whether to outsource, scientific calculation and analysis are needed. If there are big mistakes and loopholes in cost analysis, it will inevitably lead to mistakes in outsourcing decision-making and bring great risks.
B. risks of outsourcing service provider selection. Enterprises have great risks in the choice of outsourcing service providers. Due to the asymmetry of information, according to the viewpoint of game theory, there will be a phenomenon that the inferior will expel the superior. Therefore, the outsourcing service provider that enterprises finally choose is often not the best choice. Outsourcing service providers are usually independent legal entities. Through the cooperation of outsourcing business, there is a "principal-agent" relationship between enterprises and outsourcing service providers. In the case of asymmetric information, it is easy to cause insufficient control and affect the signing effect.
2. Risks from contractors
A. The loss of contractor personnel leads to the leakage of technology and information. An enterprise entrusts its non-core business to an external contractor for development or operation, and the contractor may involve confidential corporate privacy information (such as trade secrets and internal information) during the project development process. The contractor may inadvertently disclose the private information of the enterprise to competitors due to the brain drain, thus affecting the competitiveness of the enterprise or having other adverse consequences.
B. The contractor may have moral hazard of "hidden behavior". Before signing the agreement, due to information asymmetry, the information superior party (contractor) may deliberately conceal information in order to obtain greater benefits in the transaction, thus bringing risks to the information inferior party (contractor). For example, in order to achieve the purpose of contracting outsourcing projects, outsourcing service providers deliberately hide some of their shortcomings, such as poor equipment and poor technology.
3. Send and receive risks arising from the contractor's transaction.
The coordination problem in outsourcing transaction means that there are certain risks in the communication between the two parties during the outsourcing process. Contractors and outsourcing enterprises are two independent economic entities, and the differences between them in strategic objectives, management concepts and corporate culture often lead to communication obstacles and misunderstandings. At this time, if there is no common interests as the basis, no clear cooperation contract as the constraint, mutual distrust between enterprises and outsourcing teams, mutual prevarication and blame, then effective cooperation will be difficult to continue, outsourcing execution and implementation costs will surge, and even lead to the final abortion of outsourcing.
4. Risks from external environment
When the employer and the contractor are in different countries and have offshore outsourcing, it is also necessary to consider the risks of the external environment to outsourcing. For example, exchange rate risk, the risk of rising labor costs caused by RMB appreciation, and the risk of global economic turmoil.
Precautionary measures of outsourcing risk
Ding Tao will give unique measures to avoid the risks in the above-mentioned outsourcing management process, so as to better enable the employer and the contractor to achieve a win-win goal.
1. Cooperate with professional outsourcing service providers.
Employers should first set up a contractor library, reduce the number of candidate contractors, select suitable partners and get along well with them. The selection of contractors should follow the following principles: the principle of moderation should be adopted, and professional manufacturers that are too strong or too weak should not be selected. Too strong professional manufacturers, enterprises can not control, but may also be controlled by the other side, making themselves in a very passive position; Weak professional manufacturers can't provide good services and products, so enterprises have to look after these weak professional manufacturers, which will affect the promotion of enterprise competitiveness. The most important thing in choosing a partner is the business ability, development strategy and business philosophy of the strategic partner. Obviously, the two sides are not a simple business relationship, but have the same interests. They should always maintain good relations with customers and contractors, not only to ensure the control of outsourcing process, but also to communicate effectively with contractors.
2. Contractors can try to establish a long-term and stable strategic partnership.
By establishing a long-term and stable strategic partnership, enterprises of both sides can not only avoid the moral hazard of "hidden behavior" of contracting enterprises and the risk of contract termination at will, but also make service outsourcing not only stay at the tactical level of seeking cost advantage and gaining market, making service outsourcing an important strategy for contracting parties to gain competitive advantage, improve supply chain efficiency and seek long-term cooperation between enterprises.
3. Make the contract as comprehensive and flexible as possible.
Make the contract as comprehensive and flexible as possible on the basis of full participation of both parties in the discussion. The agreement should include: a complete service level agreement (SLA), which defines the framework of performance, monitoring, measurement and reporting; Operation Level Agreement (OLA), or "rulebook", is used to explain the operation rules that both parties should follow; The withdrawal agreement stipulates under what circumstances the employment contract can be dissolved and how to deal with related benefits, wages, bonuses, severance pay, etc.
4. Establish a perfect supervision mechanism.
In the process of contract execution, strong supervision of contractors can further reduce the risks from contractors. The employer shall set up a supervision team composed of IT experts, financial experts and strategic experts, or employ a third-party supervision organization to supervise subcontractors, find problems in time and take measures to reduce risks. The supervision of docking contractors mainly includes three aspects: service quality supervision, project progress supervision and project cost supervision.
5. Establish a flexible incentive mechanism
The employer shall set different grades and give different rewards according to the scope of service outsourcing and the quality of products provided by the contractor. At the same time, if the contractor achieves technical improvement and breakthrough in some fields during the completion of the project and helps the contractor achieve commercial profit, the contractor shall give the contractor additional rewards. Through these measures, contractors are encouraged to adopt new technologies and continuously improve service quality. At the same time, it can minimize the loss of contractors and reduce the risk of information leakage.
6. Assess the situation and actively respond to external environmental risks.
Employers should fully understand the development of the global economy and the development trend of the overall market, and actively respond to the risks brought by the external environment. For the inevitable risks caused by force majeure, active remedial measures should be taken to minimize losses; For risks such as exchange rate changes, appropriate exchange rate settlement methods should be adopted to avoid such risks.
At present, enterprise outsourcing is in the ascendant, which has greatly promoted human production and organization. How to manage the relationship between contractors and outsourcers, avoid the risks between them and further promote outsourcing, not only academic circles but also business circles should pay close attention to it. Ding Tao believes that contracting enterprises should choose suitable service providers according to their own outsourcing business needs, establish a good strategic partnership with service providers, and at the same time adopt effective supervision and incentive mechanisms for contractors in the whole contracting process, so as to minimize risks and achieve mutual benefit and win-win results.