Outsourcing purchase components or "hard goods" is not a new phenomenon, it is known as a "buy" part of the company to make or buy decisions. In the current service-oriented economy, however, make or buy decisions are now often or buy decisions that reflect the strategic question of outside organizations should be hired to perform significant activities of support services. Support functions such as information technology and customer service can be transferred to provide many organizational benefits. Companies often point to the cost of labor and training, but also point to the benefits of issuing corporate resources for an alternative use, and allows the business to focus on their core competencies. Outsourcing of support functions is not easy, though, companies must manage the relevant strategic, quantitative and qualitative risk factors. This article discusses some of the potential risks that must be addressed when the company outsourced internal support functions, and describes how the Committee of Sponsoring Organizations of the Treadway Commission's Enterprise Risk Management (ERM) model can help to manage and control these risks. "Hide
by Cecil A. Raiborn, Janet B. Butler, Mark F. Massoud Source: Business Horizons 10 pages. Publication Date: July 15, 2009. Prod. #: BH337-PDF-ENG
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