TECH TRENDS of tech risk and liability , so it is extremely important to have clear contractual and commercial terms that back-off liability and risk both upstream and downstream in the supply chain .
The option to build in-house
Some organisations may try to develop their own proprietary technology in-house . However , the cost-benefit of starting from scratch or transitioning clients to a new proprietary technology platform can be difficult to navigate . The challenge for the vast majority of FGT businesses is whether the protection given from building services from scratch outweighs the convenience of outsourcing . The funds and extra skill sets needed , as well as the need to keep the day-to-day operations running smoothly , can be too much of a headache .
A watertight relationship
The reality is that it makes sense to make careful use of third parties . But it ’ s important that the company ’ s relationship with its suppliers – and the protections offered as part of those agreements – are absolutely watertight . So , for example , you should try to insulate the business from consumer action if they suffer from your downtime caused by a supplier , through advantageous terms or an easy exit route if your supplier fails you . If your service depends on a cloud hosting provider that offers only contract terms with limited service levels and a broad right to suspend its service , you need to make sure that your customer offerings mirror those terms . This will not only protect the business but prove to an investor that the company has covered the risks that can sometimes be outside of its control .
As with any business , the battle is always to reduce risk , and when a business is scaling and relying on outsourcing , the risks can be higher . By diversifying its dependence on suppliers , it can lower the chances of being caught out if a single supplier faces challenges of its own .
By having clear and consistent contracts in place , the company can ensure it continues to manage technical and commercial risk within the business , putting it in a strong position when looking for further investment as it scales . x
THE CHALLENGE FOR THE VAST MAJORITY OF FGT BUSINESSES IS WHETHER THE PROTECTION GIVEN FROM BUILDING SERVICES FROM SCRATCH OUTWEIGHS THE CONVENIENCE OF OUTSOURCING . www . intelligentcxo . com
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