August 04, 2006
The security glitch plagues IT outsourcing
When we talk about IT outsourcing, we essentially talk about huge databases that are confidential and well protected by vendors. However, as I mentioned in an earlier post on this forum, security is emerging as a major concern for outsourcers. In spite of the tacit understanding between vendor and outsourcer that data is confidential, sensitive information has managed to trickle out, beating all security precautions.
The threat to security in outsourcing is a global phenomenon. It has happened in India, and it is happening elsewhere, although the implications are slightly different. Take, for instance, the high-profile outsourcing agreement between Westpac Bank and IBM GSA. Westpac is regretting the fact that it outsourced its security as part of the 10-year, $4.3 billion IT outsourcing pact.
As a result of outsourcing its security management back in 2000, Westpac was left with only one on-house person for information security at the bank. It is only in the last three years that Westpac is beginning to get a grip on the situation. However, it will take much longer for the bank to get rid of the damage to its reputation. As Westpac's chief information security officer and CIO of enterprise services David Backley says:
If cybercrime and other forms of fraud erode trust where will we go? We do not want a loss of confidence in new banking channels.
IBM, your comments, please!
Computerworld has the full story.
--
Did you enjoy this post?
Comments
Post a comment
« "Engineered in India": India waiting to cash in on global engineering outsourcing | Main | India’s Outsourcing Revenue Is Growing »
Recent Comments