Risk Radar Newsflash | Coronavirus Outbreak Poses Increased Risk to Services Delivery from China

31 Jan 2020
by Anurag Srivastava, Parul Jain, Sumit Kumar

A recent cluster of pneumonia cases first identified in Wuhan, the capital of China’s Hubei province, were caused by a novel coronavirus (nCoV). The virus has shown evidence of human-to-human transmission, and its transmission rate has escalated recently. According to the latest reports, 9,800 people have been affected by this deadly virus in China. Global businesses operating in China are closing stores, scaling back operations, and restricting travel as the Chinese government races to control the coronavirus. Additionally, airlines and cruise lines are halting travel to the country, essentially causing a total lockdown.

We recommend that IT-Business Process (BP) services firms migrate their critical operations to alternate delivery locations and promote the use of teleconferencing and work-from-home policies to ensure business continuity with minimal impact to operations. Additionally, the companies should implement precautionary measures in compliance with the government guidelines. (Please refer to Everest Group’s Global Locations Annual Report for a detailed risk profile.)

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