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While many of these risks may be covered with a contract, unless all the potential risks involved are covered and the scope of the contract is clearly defined, the outsourced task may not result in a cost saving and when considering the language and social barriers as well as the time differences, the contract may become difficult to manage. The outsourcing organization must be carefully selected and researched and should the organization be located in another country, laws and regulations must be researched and followed. Pozzi (2006) states, “Outsourcing contractors must meet U...
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