Outsourcing Risk-Value Matrix

The Outsourcing Risk-Value Matrix helps businesses evaluate potential outsourcing opportunities by balancing the value derived from outsourcing against the associated risks. It provides a clear visual representation to guide decision-making, ensuring that high-value, low-risk tasks are prioritized for outsourcing.

At a very high level, the Outsourcing Risk-Value Matrix is used in the context of business, strategy, risk management.

Want to try this template?
Other Templates

What is the Outsourcing Risk-Value Matrix?

A visual explanation is shown in the image above. The Outsourcing Risk-Value Matrix can be described as a matrix with the following quadrants:

  1. High Risk, High Value: Tasks that offer high value but come with significant risks, e.g., outsourcing core IT infrastructure.
  2. Low Risk, High Value: Tasks that offer high value with minimal risks, e.g., outsourcing routine customer support.
  3. High Risk, Low Value: Tasks that offer low value and come with significant risks, e.g., outsourcing niche product development.
  4. Low Risk, Low Value: Tasks that offer low value with minimal risks, e.g., outsourcing basic administrative tasks.

What is the purpose of the Outsourcing Risk-Value Matrix?

The Outsourcing Risk-Value Matrix is a strategic tool used by businesses to assess and prioritize outsourcing opportunities. The matrix is divided into four quadrants, each representing a different combination of risk and value. The horizontal axis represents the value derived from outsourcing a particular task or process, ranging from low to high. The vertical axis represents the risk associated with outsourcing, also ranging from low to high.

By plotting tasks or processes on this matrix, businesses can visually identify which tasks are most suitable for outsourcing. For example, tasks that fall into the high-value, low-risk quadrant are ideal candidates for outsourcing, as they offer significant benefits with minimal risk. Conversely, tasks in the low-value, high-risk quadrant should generally be avoided for outsourcing.

Use cases for the Outsourcing Risk-Value Matrix include evaluating IT services, customer support, manufacturing processes, and more. By systematically assessing the risk and value of each task, businesses can make informed decisions that optimize their operations and reduce potential downsides.


Want to try this template?

What templates are related to Outsourcing Risk-Value Matrix?

The following templates can also be categorized as business, strategy, risk management and are therefore related to Outsourcing Risk-Value Matrix: Product-Market Matrix, 4 Ps Marketing Mix Matrix, AI Capability-Value Proposition Alignment Matrix, AI Innovation-Value Alignment Matrix, AI Maturity Matrix, AI-Value Proposition Alignment Matrix, AI-Value Proposition Matrix, AIDA Marketing Matrix. You can browse them using the menu above.

How can I use Outsourcing Risk-Value Matrix in Priority Matrix?

You can get Outsourcing Risk-Value Matrix in your Priority Matrix in just a moment:

  1. Click to sign in or create an account in the system
  2. Start adding your items to the matrix
  3. If you prefer it, download Priority Matrix and take your data with you

Learn more about Outsourcing Risk-Value Matrix, and get free access to lots of other templates, at templates.app. Once you are comfortable with the document, you can easily export to Excel, if you prefer to work that way.

If you have any questions and you can't find the answer in our knowledge base, don't hesitate to contact us for help.