Next, a client company needs to have assurance that an outsourcing provider is ready to recover from a disaster and restore operations within a reasonable period of time. A client company must review, through a third-party company, an outsourcing provider's backup capabilities, recovery procedures, level of data redundancy, and functionality of alternative workplaces in the event of environmental risks. Additionally, you should verify that an outsourcing provider has a disaster notification system to transmit status updates so that a client company can receive timely warning signals. The key strategy for risk mitigation is to have always open and transparent communication channels between the client company and the outsourcing provider to monitor and resolve conflicts cooperatively. In conclusion, while the optimism resulting from seeing the benefits of outsourcing can be a motivating factor for a company, it is more prudential for a company to identify and evaluate the risks of outsourcing, and then establish a risk management plan to counteract or mitigate each of the risks arising from outsourcing.
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