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Chapter 2. Mitigating risk

2. Mitigating risk

In addition to controlling costs, we felt that outsourcing would help us to improve control of the business. With outsourcing, not only do we apply our own governance and control structure, but so does the outsourcing company, which applies its own management and control.

Neil Tointon, Operations Director, Abbey Life

Like any other commercial decision, changes in the sourcing of services are fundamentally about balancing risk and benefits. With outsourcing decisions, it is crucial for the CEO to recognize that this momentous change has implications and ramifications far beyond the obvious effect on costs, headcount and processes.


  

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