Outsourcing IT Security: Leverage or Threat?

Outsourcing as defined refers to the way in which companies entrust the processes of their business functions to external vendors. Any business process that can be done from an offshore location can be outsourced. This includes functions like transaction processing, payroll and order and inventory management.

Outsourcing is not a new thing for businesses. It’s been a part of their operation as the processing seemed to be more complex, more challenging that a business has to be efficient with the utilization of resources to exist and seam with tough competition.

“Do what you do best and outsource the rest”, Peter Drucker

Such a short but very powerful words from this Austrian-born educator. This means that the company will have to focus on its strength while outsourcing its weakness. But how about  outsourcing IT security? This may not be easy for all companies though.

Computer security, also known as cybersecurity or IT security, is the protection of computer systems from the theft or damage to the hardware, software or the information on them, as well as from disruption or misdirection of the services they provide.

For a company to outsource its IT security means reducing the cost and improve its efficiency by transferring IT security as a function to outside supplier rather than doing it within the business.Why outsource? Well, here are some of the reasons why companies choose to outsource some of its business function like IT security.

COST

The most obvious reason of all. Who wants more cost? No one.  Looking back to the economic concept of marginal thinking, where producers will likely to maximize the benefits from its resources at  the least possible cost. Indeed, business people know this by heart. To outsource this means to trim down cost, the concept of cost advantage per se, is highly considered. Here, we are talking about how a business can elude the too much cost brought about by handling IT security that they are not expert in. It will be able to avoid training fees for their employees as research and development  in handling and protecting sensitive information within their system. Also, they will be able to save itself it in producing such high technological advancement in handling IT security than entrusting it with the experts.

CORE COMPETENCY

Here, the company is focusing its effort and the use of its resources to functions that they are good in. It’s like saying, I will use my time for studying than washing up my clothes, why not have it done by the laundry? By this, I’m better off. It will not be effective for the company to use its people asset  on the tasks that cannot be managed even by the highly skilled employees. Because of the advances in technology, the company will free itself from the cost and waste of resources which in fact can actually be diverted to other important business functions.

IMPROVE PRODUCTIVITY AND LEVERAGE

By outsourcing, companies can have the chance to have the best processes that will enhance products and services that they offer. With the advancement in technologies, businesses would aspire to have the best partner that can uplift their sense of leveraging in handling IT security. Since sensitive and valued information are to be protected, the company cannot bargain to entrust IT security in “less”suitable third party.

Companies, in its effort to meet the demand of customers, they are considering outsourcing as an advantage. But what are the set-backs?

RISK

The company is allowing “others” to take charge, manipulate, use and may divulge sensitive data to the outside world. This means that the third party will have the control over the security of the subtle area of business processing, the IT. Data security leaks may be the source of rundown of a business since these companies are vulnerable to cyber attacks.

NEGATIVE IMPACT ON BUSINESS PROCESSING

Due to trimming down of the cost, the company will tend to choose the labor power to have the least cost possible. But sometimes, the integrity of the third party must be evaluated, such that if you put your trust in the wrong people, the impact could be detrimental to the organization. There maybe mishandling of the product or incorrect procedures of services may be done by the third party such that it can pose a reason for customers to avoid your products.

With so many threats on the rise,  here  are the few conditions that must be stipulated on policies to be included service level agreement with an IT security ousourcer.

CONTROL AND LIMITATION

A business should  make sure that the the third party will have a limited control over the data that they are protecting. It should always be clear between the two parties that they are only allowed up to a certain degree when it pertains to the use and disclosure of the data. It should also develop rapport on the third party to maintain the good relationship.

CONSEQUENCES OF BREACHING 

Both parties should agree that breaching the contract may cost the life of the business, thus each should be properly guided with policies stated on the terms and conditions of the agreement. Since both of them are just doing business, each should protect their reputation to go on together. Breach of a  contract may have corresponding monetary penalty if it the third party breaks in the rules and regulations.

As much as we wanted to secure our business, there are lots of potentials Outsourcing can bring. But also, in a way, it poses threat to the business  as a whole. That’s why when it comes to IT Security outsourcing, the company should really take extra precaution to minimize failure in future.

 Sources:

https://www.flatworldsolutions.com/articles/benefits-of-outsourcing.php

https://www.google.com.ph/?gfe_rd=cr&ei=zImcWNjAFLLz8AfE9qOABA#q=outsourcing

Hard Skills, Soft Skills

Significant Change?

Yes, in the past ten years, I saw lots of changes happening, and indeed it’s affecting the ways businesses and organizations do their stuff, it’s likely more of the “substance” than the aesthetic. It’s more of I am here now, and still here after 10 years and not just a fad for today. Consumer behavior is relatively changing, thus creating this   domino effect on products, prices , promotion efforts and skills needed by managers to cope up with these remarkable changes.  Businesses and organizations have to come up with solutions and strategies using scarce resources in strengthening its competitive advantage from the rest of competitors.

When we say successful business, what’s the first thing that comes in your mind? ofcourse, not one but FOUR P’s (people, place, product and promotion). Competition is relatively tough, that businesses seemed to shift its focus;  it’s not just about having good products and a good system in the right place, it’s about having good people managing the business-its entire system bringing new products and services in the limelight amidst competition. It’s more of defying the odds to remain in the spotlight, conquering and discovering new ideas to seam the ever changing needs and wants of consumers. It’s being unique, it’s being always new, and it’s being innovative, using IT to make the DIFFERENCE.

People?

Managers are the key people for the success or failure of information system of an organization. That’s why companies are hiring managers that can participate effectively in IS decisions. These decision is very decisive since it would entail cost and time for implementation and execution of projects pertaining to IT.

Skills?

Hard skills are specific, teachable abilities that can be defined and measured, such as typing, writing, math, reading and the ability to use software programs. By contrast, soft skills are less tangible and harder to quantify, such as etiquette, getting along with others, listening and engaging in small talk. (www.investopedia.com/terms/h/hard–skills.asp)

For me, to be a part of IS decisions, it takes soft and hard skills to be effective in decision making. Specifically,  these are my picks: communication skills, leadership skills and risk management skills.

COMMUNICATION SKILLS

“I say, you follow” a no brainer they say, but this I think is a significant skill to possess. Effective managers are excellent in communications skills such that they can speak the right language to the right people thus they get things done effectively. These  managers can actually reach people with different backgrounds, different attitude and behavior. They can help each employee understand the process for them to cope up easily with changes in the organization. These people can briefly notify customers and stockholders about certain situations.  In today’s fast pacing global environment, communication is very vital since it will entail negotiation and collaboration process among employees as well as consumers and stockholders.

LEADERSHIP SKILLS

“let’s do this together”- these are people waking up early in the morning thinking of how they could actually help the welfare of the organization. Managers should be a leader that thinks of a strategy than just completing a task given to him. In marketing for instance, it’s not just reaching target quotas but building relationship and maintains it for life. In a way, there’s that domino effect here. You build now, you get the benefit later.  Not all leaders I’ve known are best in leading, they often think of themselves as more like a “boss”, they lifting up themselves in the expense of their colleagues. What makes these leaders so gifted with leadership skills is that, they are able to familiarize themselves with the trend in behavior and attitude of customers, as well as his colleagues, staffs and stockholders.  They possess dexterity which enables them to lead the team well and be able to deliver the projects efficiently.

RISK MANAGEMENT SKILLS 

“trouble shooters”- being adaptive is a skill that not all managers have. They may just be completing a task for instance but not having the skill to resolve conflicts when it arises. Managers in this case should somehow have this kind of psychology background, those who can predict the future and be able to prepare or at least mitigate the negative events. Well, not all managers can just beat the deadline without compromising the cost incurred. So, like what we have learned in our economics, critical people think at the margin, consumers always make the best out of what they have. Managers in this case should able to allocate the scarce resources to the project for example, without missing the deadline and without compromising the cost that will be incurred by the company. These managers immediately come up with solutions rather than whining and reacting to system failures.

Decision making and problem solving not only entails understanding the steps but understanding and foretelling the totality of impact of the said decision to the welfare of the organization. That’s why systems can’t just function alone. It needs effective managers to participate in IS decisions, to effectively serve its purpose.

Lastly, all these three skills mentioned are combination of soft and hard skills. Moreover,  if these skills are used with passion-  definitely employees,    specifically managers can create a masterpiece.