September 24, 2005
Security risks in outsourcing
A critical area of consideration for any organization looking for an outsourcing partner is the level of security that the partner can provide for its data. This consideration should not be lost sight of in the search for the service level and cost effectiveness of the venture. It is important to clearly define the security objectives in the agreement, and provide for enforcement of provisions for any breach of security.
Blackenterprise.com provides a list of such risk areas, which includes leakage of a company's critical information, revelation of customer and employee information, violation of patents and exclusive technical know-how, moving IT hardware and software to a new and insecure location, and no provision for control over the staffing by the vendor. These risks need to be addressed in agreements between the company and the service provider, so that there is no room for ambiguity regarding security responsibilities. Blackenterprise.com reports:
The outsourcing contract becomes critically important for outlining security responsibilities and penalties for breaches. To properly address security in a contract, a review team should analyze each business process that will be affected by the proposed outsourcing. This review should consider the various risks that could affect each business process, and provide a channel to raise issues to the senior decision-makers.
Read More: Reviewing the Security Aspect of Outsourcing
--
Did you enjoy this post?
Comments
The comments to this entry are closed.
« Technology Forecasters Inc. to hold event for outsourcing relationships and supply chain in Munich | Main | Considerations in IT outsourcing »
Recent Comments