Going Concerns When it comes to reasons for outsourcing offshore, finance executives are more concerned about staying competitive and improving profits than about the possibility of negative publicity or poor work morale. Negative publicity also ranked last on the list of potential outsourcing risks. Our survey respondents are far more worried about possible weaknesses in internal controls at their outsourced location (a concern that reflects the wide-ranging impact of Sarbanes-Oxley Act of 2002) and loss of intellectual property. (Among the smaller sample of those currently outsourcing or planning to, loss of intellectual property narrowly passed internal-control weaknesses as the top concern.)
Please rank the top factors you would consider when deciding whether or not to outsource offshore.
1. Need to remain competitive
2. Desire to improve profit margins
3. The impact on workers who will be displaced
4. Desire to reallocate resources to new opportunities
5. The impact on morale of remaining employees
6. Risk of negative publicity
How concerned are you about the following potential risks of offshore outsourcing?