The first main threats of IS/IT outsourcing are the issue of trust because it has become very important things to ensure that third parties into personal or confidential information to protect that information from misuse and not authentic. Basically, customer organization is needed increasingly being held responsible for securing and protecting customer information. The protection of customer they need use the approved authorization to avoid problem or misuse for those who like hackers. Furthermore, it also concern in regard to unauthorized and unintended disclosure of government confidential or proprietary information, as well as intellectual property.
The other threat of outsourcing is loss of the technical knowledge that means a client gradually lose their understanding of the service over time. For example, when provider deliver innovative services, the client can have the problem such as they can’t be transfer and also the firm may lose the capacity to stay up to date with the technological breakthrough.
Lack of expertise also is one of main threats outsourcing. It can be difficult to find the third parties or other people with a proven team of experts who are experienced in industry being serviced such as in specific computer application, programming languages and more. It will be happen when they had to use the manual ways to provide lists of their staff with their resumes, and should retain the right to approve any substitutes.
Beside that, staff problem also is a threat of outsourcing because they as workers face an uncertain situation which provokes anxiety, low morale, and feeling of insecurity which can lead to a decrease in their productivity levels. These will also cause if some of the staff who have...
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When all threat of outsourcing is considered that’s mean it is a continual process to use the outsourcing should be reviewed and to ensure the protection mechanism of information. In terms of security also needs to ensure and make an assessment for addressing security within an organization.
Works Cited
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. 2013. . [ONLINE] Available at: http://cdn.ttgtmedia.com/searchSecurity/downloads/Axelrod.pdf. [Accessed 23 December 2013].
. 2013. . [ONLINE] Available at: https://www.waset.org/journals/ijhss/v4/v4-3-24.pdf. [Accessed 23 December 2013].
. 2013. . [ONLINE] Available at: http://www.farrell-associates.com.au/Papers/IT%20Outsourcing%20Facts%20&%20Fantasies.pdf. [Accessed 23 December 2013].
Outsourcing simply means acquiring services from an external organization instead of using internal resources (Butler, 2000). By using outsourced resources, organizations can gain a competitive advantage by utilizing contingent staff to accomplish strategic goals without incurring the fixed overhead. By focusing on the leading edge and highly specialized skill sets, outsourcing providers can often offer higher quality services, or at a lower price than the client organization. Typical reasons for outsourcing go beyond simple contingent staffing. Outsourcing providers are able to maintain economies of scale with regard to specialization (...
"The next step is to determine the impact that the threat could have on the organization. It is important for auditors to understand that not all threats will have the same impact. This is because each system in the organization most likely will have a different value (i.e., not all systems in the organization are worth the same or regarded in the same way). For instance, to evaluate the value of a system, auditors should identify the processes performed by the system, the system's importance to the company, and the value or sensitivity of the data in the system" (Edmead). To understand the important of a risk helps point out the businesses weaknesses. It is important that the degree of impact caused by different risks are determined. The
Offshoring the management of customer relationships not only enable business growth but also lowers operational expenses and associated labor costs contributing towards the financial savings of the company. The biggest benefit of outsourcing is that it comes at a contracted price and a predictable cost because the outsourcer or the client can utilize the best talent and expertise in a highly specialized area of the outsourcing service provider while need not bother to carry them on the firm’s
In many cases outsourcing has proven to be beneficial for businesses. It can help a business’s management by allowing executives to focus on the core structure of the firm rather than every specific element. Production, manufacturing, or additional servic...
Since the concept of outsourcing was introduced it has been a subject of debate between politicians and citizens of the United States. Remarkably, it was the United States who supported outsourcing and now it is the United States that feels its economic progress is being threatened by outsourcing. One may argue that the financial situations that existed two decades earlier are not the same as they are today, thus the change of time, business priorities of economies have also changed.
When you think of outsourcing it is probably more accurate to think of it not as people's jobs that are going somewhere else but as a job, as in something that needs to be done, going to another business. For example if you have a company of forty people and you decide to get a new computer system for everyone. You may pay another company to do your IT and customer support for those computers. There for you didn't take away a job from someone you just didn't create one for the need. You paid another company to do it. They then can use one of there people who is familiar with the system already, or they take on the cost of training someone.
... negatives present, I feel that outsourcing is not a business model that many companies should follow, and if possible there should be some governmental restrictions put in place to protect workers from being displaced as a result of outsourcing.
The competitive advantage that can be gained by the companies through IS/IT outsourcing is Improved business processes. IT outsourcing an identification method and rigor of IT resources that can help the business run smoothly. It can control the development of the project budget and expenditures. It also can promote information technology investment proposals from outside and provide skilled individuals in managing IT resources available in the company. Through these companies are able to provide appropriate information and report to the company. This can give competitive advantage to the company. For example, expenditures, progress, and issues the company can be viewed and controlled.
Outsourcing financial services is a risk that can endure expensive losses. A company can easily lose control of operations and lead itself away from its goals. Loss of controls on company activities and services can occur without proper coordination and communication. Financial firms that outsource their activities must have trust in their third party. The third party should be aware of what needs to be accomplished, and in what period of time. Without coordination, a company loses valuable time and money. A firm should clearly establish objectives and communicate constantly with its outsourced entity, to ensure operations and services are carried out successfully. For most firms, outsourcing is a cost saving strategy that can minimize operational
Outsourcing has been around for many years. In this paper, I will discuss some of the history of outsourcing, the good things about outsourcing, and the bad things about outsourcing. Outsourcing is important because many companies rely on it in order to get many different products and services to their facility on time and in good shape. Outsourcing is a huge part of the business industry today. Any business can be affected by outsourcing.
The assignment research objectives were (a) to gain insight into securing strategic partnerships in the information technology (IT) arena; (b) to understand the choices made to reduce information and security risks by exploring the different outsourcing techniques, and; (c) to understand how business process associated with outsourcing will stimulate awareness on how the process is interlinked with human behaviors. The topics covered include an evaluation of the specifications of information security consultants to become strategic partners assisting in the reduction of information or security risks, an examination of four factors that were omitted in the specifications that add value to the selection process, and an explanation of the value of the four factors.
...urcing services, the company operation will be became a mess. This is because one organization can’t run a lot of task or project at one time. Therefore an organization need outsourcing in the way to help their organization run smoothly.
A disciplined approach to management eying leading employees, improving the management team and building the business strategy. Instead of treating each problem as a one off. They design systems and structures that make it easier to handle in the future. (Techrepublic, 2015) 2.2. Risk of exposing confidential data: When an organization outsources HR, Payroll and Recruitment services, it involves a risk if exposing confidential company information to a third-party Synchronizing the deliverables: Some of the common problem areas include stretched delivery time frames, sub-standard quality output and inappropriate categorization of responsibilities. At times it is easier to regulate these factors inside an organization rather than with an outsourced partner Hidden costs: Although outsourcing most of the times is cost-effective at times the hidden costs involved in signing a contract while signing a contract across international boundaries may pose a serious threat Lack of customer focus: An outsourced vendor may be catering to the expertise-needs of multiple company at a time. In such situations vendors may lack complete focus on your organization 's tasks. 2.3. 1.Know the
Nowadays, the information is the most treasured asset in an organization, due to it along with the experience represents the input necessary to take appropriate decisions and consequently to have success in the business. Almost all the information and knowledge related with the processes business, goods and services offered by a company, is processed, managed and stored through technology and information systems, thus the security of information has become increasingly important and plays a critical role in the enterprise government.
One main apprehension that they have against Information System is the high investment cost. In addition to this there is the high maintenance and upgrade costs associated with the deployment of new IT systems. In fact they prefer to outsource the heavy IT department expenditures to other companies having IT as their core activities. In return they expected to receive a full solution pack to meet their requirements and they are ready to pay these IT services as an operating cost. At the same time the risks associated with IS are being shifted to the other