When negotiating an offshore outsourcing deal, negotiators and governance team members must consider the currency risk implications to their organizations and the ramifications for the total cost of ownership of the service provided. Given the economic uncertainty looming in the global economy, protecting your organization from currency risk will be vitally important to the total cost of ownership of your firm’s outsourcing contract.
In this RapidInsight™, we explain what currency risk is for non-Treasury types and why protecting your organization from currency risk is important. In the forthcoming Part 2, we discuss how you can manage this risk using contractual terms and financial investments.
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