Risks of outsourcing personnel equipment fixed assets

I. Risks of the Contractor

1. Risks of the Outsourcing Decision. Although outsourcing has many benefits, not all companies are suitable for outsourcing. Before deciding whether to outsource, scientific calculations and analysis are needed. If there are large errors and loopholes in the cost analysis, it will inevitably lead to outsourcing decision-making errors, bringing great risks.

2, the risk of outsourcing service provider selection. Enterprises have a great risk in the choice of outsourcing service providers. Because of the asymmetry of information, according to the game theory point of view, there will be the phenomenon of the inferior expelled the superior. Therefore, the outsourcing service provider chosen by the enterprise is often not the best choice. Outsourcing service provider is generally an independent legal entity, through the outsourcing business cooperation, the enterprise and outsourcing service provider is a kind of "principal-agent" relationship, in the case of asymmetric information, easy to cause the control is not enough, affecting the effect of outsourcing.

Second, the contractor's risk

1, the contractor's personnel turnover, resulting in leakage of technology and information. Enterprises will be their own non-core business to external contractors to develop or run, the contractor in the project development process may involve the enterprise's need for confidentiality of private information (such as trade secrets, internal information). The contractor may unintentionally leak the private information of the enterprise to competitors due to staff turnover, which may affect the competitiveness of the enterprise or have other adverse consequences.

2, the contractor may have the moral hazard of "hidden behavior". Before signing the agreement, due to information asymmetry, the information superior party (the contractor) may deliberately hide the information, in order to obtain greater benefits in the transaction, and the risk to the information inferior party (the contractor). For example, the outsourcing service provider intentionally hides some of its own shortcomings, such as poor equipment and technology, in order to achieve the purpose of signing the outsourcing project.

Third, the risk of the transaction process of the receiver and the outsourcer

The coordination problem in the outsourcing transaction refers to the process of outsourcing, the two sides of the communication is also a certain risk. Receiver and outsourcing companies are two independent economic entities, the two in the strategic objectives, management concepts, corporate culture and other aspects of the differences often cause communication barriers, prone to misunderstandings. At this time, if there is no **** the same interests as the basis, no clear rights and responsibilities of the cooperation contract for the constraints, the enterprise and the outsourcing team distrust each other, each other shirking responsibilities, mutual accusations, then effective cooperation will be difficult to sustain, outsourcing execution and implementation costs will surge, and even lead to the eventual miscarriage of business outsourcing.

Four, the risk of the external environment

When the sender and receiver are in different countries, the existence of offshore outsourcing, there is also a need to consider the risk of outsourcing the external environment. For example, exchange rate risk, the risk of continued rise in labor costs due to the appreciation of the RMB, and the risk of global economic turmoil.

Through the analysis of the above article, we can understand that the risk of corporate outsourcing is the existence of a number of aspects of the impact. If you or your friends and relatives are involved in the risk of business outsourcing what are the questions, Legal Express editorial suggests that you consult the Legal Express official website or our Legal Express lawyers, their professional legal knowledge will be our protection of their legitimate rights and interests of a reliable guarantee.

Disclaimer: The content is based on the author's integration of laws and regulations, official government websites and Internet-related content, if there is any infringement or incorrect content please contact the platform to delete.

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And questions? Unlimited follow-up with a lawyer within 60 minutes. Outsourcing of non-substantial construction works are very common in life. Outsourcing companies are required to obtain certain qualifications, and the scope of outsourcing is also limited. More about the premise of outsourcing what is the relevant knowledge, the next legal express editorial for you to answer this doubt.

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