Many organizations are increasingly outsourcing their business activities to thirdparty providers for efficiency reasons. A recent study suggests 8 out of 10 companies in developed countries outsource at least one human resource activity to an external vendor. However, it is also a common knowledge that outsourcing is a risky business.

Discuss how businesses could minimise the challenges and risks of outsourcing their non-core business activities to external providers. Illustrate your discussion with relevant real life or hypothetical examples.