Cmgt 442 Week 4 Individual Assignment Outsourcing Risks
Outsourcing Risks
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Outsourcing Risks
Outsourcing has become an integral part of many organizations today. Outsourcing has its advantages and disadvantages that organizations will have to weigh to decide whether or not outsourcing is the best possible solution to their current problems and business operations. Outsourcing refers to the process of hiring external provider to operate on a business or organization function (Venture Outsource, 2012). In this case, two organizations or businesses enter a contract where there will be an exchange of services and payments. This paper will discuss the possible risks an organization may encounter in outsourcing in relation to the use of an external service provider for data storage, use of an enterprise service provider for processing information systems applications such as a payroll, human resources, or sales order taking, use of a vendor to support desktop computers, and use of a vendor to provide network support. This document will also discuss the risk mitigation strategies for each individual situation.
Data Storage
Outsourcing business functions that include data storage and backup is increasingly becoming a popular choice these days and an excellent method for organizations to take advantage of the modern technology without having to literally own and operate the mechanical components. The large number of data storage providers makes outsourced data storage services easily available to organizations.
The most risky part of outsourcing data storage is that the organization may not be aware on exactly how the data is handled and managed. Especially on data that are sensitive, a simple mistake can open huge opportunities for a potential leak. When it comes to information technology, information security is extremely important. The safety of information must be considered in terms of confidentiality, integrity, availability, and non-repudiation (Byrnes & Proctor,
Name
Course
Date
Instructor
Outsourcing Risks
Outsourcing has become an integral part of many organizations today. Outsourcing has its advantages and disadvantages that organizations will have to weigh to decide whether or not outsourcing is the best possible solution to their current problems and business operations. Outsourcing refers to the process of hiring external provider to operate on a business or organization function (Venture Outsource, 2012). In this case, two organizations or businesses enter a contract where there will be an exchange of services and payments. This paper will discuss the possible risks an organization may encounter in outsourcing in relation to the use of an external service provider for data storage, use of an enterprise service provider for processing information systems applications such as a payroll, human resources, or sales order taking, use of a vendor to support desktop computers, and use of a vendor to provide network support. This document will also discuss the risk mitigation strategies for each individual situation.
Data Storage
Outsourcing business functions that include data storage and backup is increasingly becoming a popular choice these days and an excellent method for organizations to take advantage of the modern technology without having to literally own and operate the mechanical components. The large number of data storage providers makes outsourced data storage services easily available to organizations.
The most risky part of outsourcing data storage is that the organization may not be aware on exactly how the data is handled and managed. Especially on data that are sensitive, a simple mistake can open huge opportunities for a potential leak. When it comes to information technology, information security is extremely important. The safety of information must be considered in terms of confidentiality, integrity, availability, and non-repudiation (Byrnes & Proctor,
References: Bragg, S. (2006). Outsourcing: A Guide To-- Selecting the Correct Business Unit-- Negotiating the Contract-- Maintaining Control of the Process. John Wiley & Sons. Retrieved from http://books.google.com/books?id=8bybqhKyuQYC&dq=outsourcing&source=gbs_navlinks_s Byrnes, C., Proctor, P. (2002). Information Security Must Balance Business Objectives. Retrieved from http://www.informit.com/articles/article.aspx?p=26952. Rabinovitch, E. (1997). Outsourcing Network Management. UniNews Online. Retrieved from http://www.uniforum.org/web/pubs/uninews/970606/feature4.html Venture Outsource. (2012). EMS Industry terms and definitions. Retreived from http://www.ventureoutsource.com/contract-manufacturing/information-center/terms-and-definitions/3/