What are the possible risks of outsourcing an IT function of an organisation?

Business owners who consider outsourcing IT functions may face the following risks:

1. Some IT functions are not easily outsourced. IT affects an entire organization; from the simple tasks employees do every day to the complex automated aspects. Be sure the outside vendors are qualified to take care of your greatest needs.
2. Control may be lost. Critics argue that an outside vendor will never be as effective as a full-time employee who is under the same management as other employees. Other concerns include confidentiality of data and disaster recovery. However, a supervisor that is knowledgeable in managing an IT staff member will usually be required.
3. Communication gap is another risk that a business firm may face while outsourcing it’s IT functions. From simple language barriers, to use of communication tools being imperfect, leads to a difficulty in conveying the vision/strategy.
4. Employee morale may be affected negatively. This is particularly true if you will be laying off employees to replace their job functions with an outsourced firm. Other employees may wonder if their job is at risk, too.
5. You may get locked in. If the vendor does not document their work on your network and system, or if you've had to purchase their proprietary software, you may feel like you can't go anywhere else or take back your network. Many outsourced companies require you to sign a year to year contract which limits flexibility.

Most of these risks can be avoided if you know what qualities to look for while choosing an offshore team for outsourcing.