Due diligence involves testing of the ability of partners to conduct required services in the future cooperation. This is a bi-directional process, result of which is mutual acceptance of the partners of outsourcing or rejection of proposed agreement. Main areas of analysis are: the volume of demand for services and the ability to meet this demand, organizational structure of customer and the service provider, development activities, requirements of information system integration, cost calculation methods.
- Perry, J. S., & Herd, T. J. (2004). Reducing M&A risk through improved due diligence. Strategy & Leadership, 32(2), 12-19.