For IT Services Professionals

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	April 24, 2006 How To Manage Enterprise Risk In An Outsourcing Deal: Worry Early! Start Risk Management When Designing Your Outsourcing Strategy by Paul Roehrig, Ph.D. with Christine Ferrusi Ross, Olivia Ester

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Executive Summary

With few exceptions, enterprise risk management (ERM) in an outsourced environment is something that gets considered after ink hits the paper. But by then, customers have bypassed several opportunities for protecting their businesses. Warren Buffet said, "Risk comes from not knowing what you're doing." This may seem harsh, but it's certainly apropos of outsourcing and risk management. To help clients reduce business risk, Forrester interviewed leading sourcing deal advisors and asked them to identify risk management principles and tactics that can be applied throughout the sourcing life cycle. This second document of the series focuses on specific tactics for the strategy development phase of an outsourcing deal that can help build a foundation for business risk management.

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