For IT Services Professionals

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	April 12, 2006 Bet On Governance To Manage Outsourcing Risk Tactics For Risk Management Through Good Deal Governance by Paul Roehrig, Ph.D. with Christine Ferrusi Ross, Michael Rasmussen, Leigh Powers, Olivia Ester

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Executive Summary

Eat right. Don't run with scissors. Exercise regularly. By definition, conventional wisdom about life seems intuitive, but the challenge is applying the advice in the real world. Likewise, risk management concepts may seem etched into the hallowed walls of the corporation — but often they aren't implemented and adapted to changing business conditions. Because IT outsourcing and business process outsourcing (BPO) touch financial, technical, and business aspects of risk, customers can be challenged by unfamiliar legal concepts, seemingly Byzantine business processes, and unclear compliance requirements. Forrester interviewed leading sourcing deal advisors to identify principles and tactics to take throughout the sourcing life cycle that can help build a foundation for risk management in an outsourced environment. This first document of the series focuses on how governance can be used to manage business risk in an outsourcing deal.

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