Outsourcing generally, and offshore outsourcing in particular, continues to be a key part of many companies’ supply and cost management strategy. The strategy has proven to be effective but brings with it significant risks that must be recognized and managed. In outsourcing, a company is relying on someone else to run certain business functions. If not properly managed, companies may negatively affect their operations and customers. The product or service can be outsourced, but the risk cannot.