Third Party Risks
As a result of globalization, the current enterprises rely on third party services, contractors, and vendors in accomplishing their tasks. Most companies do out source services in accomplishing their objectives. Although outsourcing services may provide the best strategy for a given organization, there are also other risks associated in such plans.
In a situation where an organization is outsourcing services from third party, developing that relationship requires critical understanding of the situation. In this case, the essay evaluates on risks that associates in having such a relationship. In a third party relationship environment, there are risks as well as opportunities that all parties involved should be able to evaluate so as to have a healthy workplace environment. In this case, Jill’s computer shop has for years been providing IT services to Real Estate Company and due to globalization, Jill has gone further in outsourcing IT expert services in order to meet clients needs.
Discussion
Service Availability
This kind of relation has risks associated with service provision simply because different parties are involved. One of the areas of risk associated with this type of relationship is the service availability. Although there exists a relationship in providing IT services, one of the risks associated in this situation is whether there is service continuity.
Jill has been providing services to the clients for long time. In providing services, there is something known as business continuity. Since clients will come for the same services due to the current globalization, is Jill in a position to provide services to the clients. Jill does outsource some IT services from the experts in order to serve his clients. One of the greatest question is, are the experts available throughout in providing IT services to the clients whenever they want, (Waters & Waters, 2011).
Service Accuracy
This is another area that requires focus so long as the relationship is there to last and help all the parties involved. Since there several parties involved in this situation, there is a great risk of providing services that are not accuracy. Determining the type of services offered to the client and the type of the expert has for the client becomes a major worry in such a situation. Jill should be in a position to determine what the clients want and what the experts has in order to ensure there is continuity in the business. There should be appropriate strategies and measures that ensure the right services have been provided and that the needs of all parties have been meet, (Hopkin, 2012).
Alignment
In a third party relationship situation, one of the things to worry is whether the services offered are of the expected quality. In determining whether services offered are those expected, the major aspect to look is whether the third party has the right services for the clients. This area carries a lot of risk simply because the third party in this case may not have the right services for the clients. It therefore means that clients will get services that they do not want something that will develop some blames to the company that hired the third party. It is expected that the company ensures that the third party offers the expected services simply because the client won’t go for the third party else the blame will be directed to the company, (Waters & Waters, 2011).
According to the above evaluation, it is a clear indication that Jill’s computer Shop has some risks associated with its operations. In discussing the above and other risks that the company may encounter, there are few questions that should be addressed to Jill. Since services are offered by the third parties, are they in a position to deliver services that are expected by the clients? The current globalization affects how things are done and requires developments and changing thing now and then.
In line with that, how effective are the experts ready to change and meet the expectations of the clients? Are the experts available whenever the clients want services from them or will the clients be required to go and wait or look for services from other companies? How cost effective is services offered by the experts to the clients as well as the Jill’s company? How quality does Jill’s company guarantee clients who seek IT services from the company? Those are some of questions that should be addressed to Jill in order to determine how effective the company is towards provision of services to the clients, (Hopkin, 2012).
In order to incorporate security to Jill’s company, there are some responsibilities that Jill should ensure there are in the right move. He should ensure that there is business continuity so as to have ready services for the clients. On the same note, he should be in a position to hire experts who are available and offer services that are quality as expected by the clients. Finally, how accurate are the experts towards expected value services, (Waters & Waters, 2011).
Reference:
Waters, C. D. J. & Waters, D. (2011). Supply Chain Risk Management: Vulnerability and Resilience in Logistics: Kogan Page Publishers
Hopkin, P. (2012). Fundamentals of Risk Management: Understanding, Evaluating and Implementing Effective Risk Management: Kogan Page Publishers
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