Page 1

Global Sourcing Risks


What is Global Sourcing ?

Out sourcing is now very important in the modern trade and commerce. ✔

Global sourcing helps to cut the operational cost of the business. ✔

This sourcing is growing at a rate of 20-25% per year.

Company approach. ✔






There are certain risks also that the company has to cater for. ✔

Global Sourcing Risks

Global sourcing is a practice of sourcing good quality low cost products and services from the global market. In order to do it successfully one needs to have detailed idea about global market. But there are certain risks in this type of sourcing. Some of the prominent risks that the company have to face when it opts for outsourcing are as follows . Cost Reduction . ➢ Security of Data. ➢ Failure in Delivering . ➢

Cost Reduction

The main reason for outsourcing is to save costs .

Mainly the IT companies use this approach.

They have a average cost saving of 15 to 20 % per year. ✔

The companies that look for cost saving opts this approach . ✔

But sometimes they do not get the expected cost reduction. ✔

Security of Data

It is very much required to provide all the information when you are sourcing your work. ✔

This is provided in order to clearly understand the project. ✔

Providing all information gives you fruitful result.

But care must be taken about the security of data.

Failure in Delivering

It may happen that the vendor may not be able to meet the deadline. ✔

This puts the trader in false position in front of the customer. ✔

It may also happen that the vendor fails to provide the required results. ✔

Therefore special care must be taken for this type of risks. ✔

Contact Us

Global Sourcing Risks  

The main aim of global sourcing is to get good quality low cost products.This PDF is made by focussing on the...