Offshoring and security: IT managers, network admins divided on risk
Does offshore outsourcing make an IT organization more vulnerable to data loss or attack? Or are offshore providers actually improving network security for their customers?
Does offshore outsourcing make an IT organization more vulnerable to data loss or attack? Or are offshore providers actually improving network security for their customers?
If there were a relatively straightforward way for an IT leader to boost his company's bottom line by millions of dollars a year, chances are he wouldn't ignore it. But that's just what many CIOs are doing as a result of poor outsourcing management.
IT outsourcing as we know it is more than 15 years old, yet service quality remains a big concern for CIOs. The results of the 2011 IDG Enterprise Outsourcing and Service Providers Survey bear that out: While 44 per cent of the 1,176 IT leaders who responded to the online survey said their service-level agreements (SLAs) were tighter than they were three years ago, they cited poor-quality service as the top risk of IT outsourcing-ahead of security, loss of internal knowledge and hidden costs. Lax internal governance and an overreliance on contractual obligations may be to blame.
When iGate completed its $1.2 billion acquisition of Patni Computer Systems in May, the two offshore outsourcing providers instantly leapt over their mid-tier outsourcing peers to become one of the biggest IT outsourcing providers in India.
When it comes to cutting costs, outsourcing is delivering the goods, according to the State of Outsourcing 2011 survey conducted by analyst firm HfS Research in conjunction with The Outsourcing Unit at the London School of Economics. Of 1,135 survey respondents (which included outsourcing buyers, providers and analysts), 95 per cent agreed outsourcing was an effective way to reduce operational costs.