The Main Threats of IS/IT outsourcing

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Everything has its drawback. As we discuss, IS or IT outsourcing have its benefits, but if they were handle unethically, it could turn to a nightmare for any business processing outsourcing or BPO. The threat can be divided into two categories, which is internal and external. External threat usually can be prevented, and does not leave a huge impact on the business. On the other hand, the internal threat could really leave a huge impact in the business.

External threat, usually are more open or public. Preventing this external threat are highly possible. External threat consist of, the loss of control over your management, hidden cost, argument of confidentiality, quality problems, tied to the financial status of another company, images of your company, general security issues in IS, and hackers.

The loss of control over you management, where when you agreed to sign a contract, to outsourced certain part of your department, it’s more likely, you give the control of that department over the outsourced company. The outsourced company was not “under the same roof” as your company missions or visions. They will be more likely, to make profits from the services that they offer.

As we know, hidden cost or charge is common, take note on this. Whatever service we subscribe, there will be hidden charges or cost. Same as outsourced company, where they will handle the paperwork of their services offered to you, in details. Although the paperwork is details, there still services that are not mentioned, but already being agreed by both parties. So the services that are not mention, but need to be conducted in order to meet its goals, will be counted as an extra charge that will need to be paid for.

For all business, data or information i...

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..., as they familiar with the company environment. This threat has proven to be the most dangerous, where it is unpredictable.

To be concluded, there are many other threat and risk of outsourcing. After considering the threat, when outsourcing, all aspect should be considered. Externally, even internally can be a major threat that could jeopardize company futures. Before outsourcing, assess all the probability of threat that may occur during the process. Counter or prevention steps should be prepared, in case of emergency.

Works Cited

James Bucki. (2013). Top 6 Outsourcing Disadvantages. Available at http://operationstech.about.com/od/outsourcing/tp/OutSrcDisadv.htm Retrieve at December 20th 2013

Efraim Turban, Linda Volonino. (November 2011). Information Technology Management, 8th Edition International Student Version. United States: Canisius College

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