Article | REF: AG5225 V1

Logistics outsourcing

Author: Victor YZERD

Publication date: October 10, 2003

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3. Outsourcing risks and approach

3.1 Pitfalls to avoid

Outsourcing a function or department is no simple matter. The risks associated with strategic outsourcing are numerous. They are frequently underestimated by managers, who are blinded by the importance of the potential benefits associated with the transfer of the activity, and by the immediate benefits in terms of profitability.

In recent years, the courts have paid increasing attention to the conditions under which these operations are carried out, in order to protect the interests of employees. They are not hesitating to question outsourcing strategies and to reclassify contracts.

Nevertheless, these outsourcing strategies have suffered setbacks in recent years. Firstly, because behind the hype of new-generation...

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