Typhoon Haiyan Points to Outsourcing Risks

Partner David Rutchik serves as an industry resource in this article about Typhoon Haiyan, reminding enterprises of the need to establish overarching business continuity strategies around outsourcing initiatives. Sample excerpts: “’In many respects, businesses were fortunate that the storm hit a largely agricultural area rather than an outsourcing hub a few hundred miles to the north,’ notes David Rutchik, a partner at management consulting and IT outsourcing advisory firm Pace Harmon. ‘From a humanitarian aspect it was terrible. From a business aspect it wasn't a significant event…The typhoon is a reminder that businesses must put upfront thinking and ongoing analysis into the offshoring and outsourcing choices they make,' says Rutchik. What's more, decisions must extend beyond costs, risk profile for a location, political stability of a country and whether service agents can speak English well. ‘It's critical to have IT redundancies in place and make sure the technology exists to automatically reroute calls on the fly,’ says Rutchik. ‘The worst case scenario is for customers to experience disruptions and encounter connection or service problems.’"

CIO Insight