Outsourcing in the 21st century is rewarding, but brings with it very specific risk management challenges, a new report contends.
Marsh, an insurance broker and risk adviser, has released a new paper called Risk Management in Next Generation Outsourcing together with Hunton & Williams.
The report asserts that developments in the market include the use of multiple vendors, a closer alignment between the service provider and the customer's firm and a greater likelihood of core business activities being outsourced.
"For those who manage the outsourcing lifestyle effectively, the rewards remain high," says Matthew Elkington, a vice-president in Marsh's Risk Consulting Practice.
He adds that companies with a comprehensive understanding of rosk management at an early stage in the outsourcing process are more likely to receive a return on their investment.
Meanwhile, a recent report from Gartner highlighted the need for online banks to improve their e-contact centre strategies as internet banking becomes a mainstream activity in the UK.
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