Global Sourcing Risk Radar

Regulatory scrutiny, demanding stakeholders, and an uncertain landscape demand that sophisticated organizations proactively monitor risk to their global services portfolio

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Global Sourcing Risk Radar

Recent events such as political crises, natural disasters, and currency fluctuations across global sourcing locations and developments in the provider community (such as visa irregularities and challenges, management changes in leading service provider organizations, and corporate fraud) have underscored the need for comprehensive global sourcing risk management that includes monitoring global sourcing risk in a strategic and intentional manner. Everest Group’s Global Sourcing Risk Radar offering provides the insight to effectively monitor, manage, and mitigate your global sourcing risk

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Everest Group’s 4E framework provides a holistic view of risk along four key dimensions:
  • Engagement: Comprised of each discrete project/ individual statement of work with each utilized service provider
  • Entity: Spans across every individual service provider with which an enterprise has an outsourcing relationship
  • Environment: Covers the operating environment relevant to a distributed global delivery locations portfolio; the number of variables that influence the environment expand as the complexity of sourcing program increases
  • Enterprise portfolio: All locations and service providers in an organization’s global sourcing portfolio

Everest Group’s Global Sourcing Risk Radar offering focuses on providing early warning signals for entity and environmental risks via robust frameworks that combine objective and subjective parameters, enabling us to conduct a multi-dimensional and comprehensive risk review to help organizations develop an informed and effective risk mitigation strategy.

Our risk assessments, which are tailored to each client’s individual portfolio of service providers and locations, combine our deep understanding of the global services landscape with our rigorous analytical skills.

Components of the assessments include:
  • Entity (service providers):
    • Tracking financial results and key events that provide insight into the financial stability of service providers
    • Noting important operational developments that may affect service providers’ delivery capabilities
    • Evaluating external pressures (such as, lawsuits, M&A) that may impact service continuity or the business health of service providers
    • Other provider-related events of note
  • Environment (locations):
    • Monitoring location developments that may impact service delivery
      • Tracking political and macro-economic developments, and their impact on global delivery
      • Monitoring and preparing for currency movements
    • Tracking changes in arbitrage economics that affect buyers’ offshore delivery locations
    • Keeping abreast of regulatory developments that impact buyers’ delivery location strategies
    • Capturing developments related to labor risk based on demand and supply-related drivers affecting the operating environment
    • Developing perspectives on infrastructure and related global services ecosystem components in a location, and tracking changes
Key aspects of our assessments include:
  • Customized approach that enables selection of portfolio-specific service providers and locations
  • View of situation-specific implications and risk management strategies for executive leadership
  • Input from our wide network of on-the-ground contacts (such as, provider employees, country associations, recruiters)
  • Coverage of all leading global sourcing locations and service providers
  • Breaking viewpoints/flash alerts to cover significant developments that impact sourcing portfolio
  • Risk dashboards that are based on client requirements and working constructs that address client-specific issues and considerations

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