Like any business strategy or model, outsourcing bears its own risks and uncertainties. Below is a business lawyer’s take on how to minimize the chances of risks turning to ruin when your company engage in an outsourcing deal.

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To engage in any business enterprise is to engage risks which must be dealt with to gain rewards.

Outsourcing, the farming out of work and processes to third-party business process outsourcing (BPO) service providers abroad, bears its own unique set of risks that, with careful research, can be avoided.

Let’s identify the most common outsourcing risks that companies encounter when outsourcing their business processes.

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Software companies today have been hiring project managers and engineer teams to develop their software products via outsourcing.

With the high bandwidth, efficient global communication through the Internet and other peripheral technology, access to capable and cost-effective talent from any part of the world is viable.

Though software outsourcing has been the road to success for many startup software firms, others are tempted but are fearful to fail.

And they’re right to fear for there are cardinal rules in software outsourcing, “sins” one must not commit lest the road to success becomes the death-walk to outsourcing hell.

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We’re a very small company that outsources work to computer programmers and artists in remote offices throughout the world.  The major problem with having workers in far-flung locations is that when you’re paying people by the hour, you really need to know that they’re working, not surfing the Internet.

When you’re all in one office in the same country, communication flows much more naturally. You can easily tap someone on the shoulder and ask him a question. But when you’re all over the place, you tend not to want to bother people with minor questions.

Ken Scharen, then CEO of One Remote Systems, a software company in Delray Beach, Florida.

Your company and your business process outsourcing (BPO) partner want to open that door towards mutual success; the key factor is constant and receptive communication.

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