Outsourcing as a Strategy

Paper Summary:

In this article, the writer discusses outsourcing that has become an important aspect of doing business. The writer points out that outsourcing is not a tactical or operational level decision for a company. Rather, it is a strategic endeavor that aims to maximize profit while at the same time mitigating various risks. The writer also points out that outsourcing risks need to be managed to gain the best value from the service or product. The writer concludes that outsourcing may be a good venture but like any business decision, a thorough risk management activity should and must be done to protect the company from any pitfalls that may come out as a result of poor planning.

From the Paper:

"Aside from some of the risks mentioned above, there are far more important ones that are not as tangible as say lost of computer equipment or lost of applications installer. The aspect that should also be watched with outsourcing is information security. Due diligence must be done to ensure the protection of the confidentiality, integrity and availability of data and information. Some of these data and information are intellectual property and proprietary information and compromise would trigger loss of confidence as well as other pitfalls."
"To guarantee success of or mitigate the risks involved in outsourcing, processes and procedures should and must be done before embarking on such a huge undertaking."

Sample of Sources Used:

• Bakalov, Rudy & Nanji, Feisal. (2005). "Offshore application development done right." Information Systems Control Journal, Volume 5, 2005. [Online] Retrieved Oct. 10, 2007 from the ISACA database on the Website: http://www.isaca.org/Template.cfm?Section=Home&Template=/ContentManagement/ContentDisplay.cfm&ContentID=27333.
• Benvenuto, Nicholas A. & Brand, David. (2005) "Outsourcing--a risk management perspective." Information Systems Control Journal, Volume 5, 2005. [Online] Retrieved Oct. 10, 2007 from the ISACA database on the Website: http://www.isaca.org/Content/ContentGroups/Journal1/20058/jpdf0505-Outsourcing-BA-Risk-Manage.pdf.
• ISO/IEC. Information Technology - Security Techniques - Code of Practice for Information Security Management (ISO/IEC 17799:2005). 2005. Geneva, Switzerland: ISO Copyright Office.
• ISO/IEC. Information Technology - Security Techniques - Information Security Management Systems - Requirements (ISO/IEC 27001:2005). 2005. Geneva, Switzerland: ISO Copyright Office.
• Overby, Stephanie. (2006, Feb. 1). Outsourcing can mean big deals, big savings and big problems. [Online] Retrieved Oct. 10, 2007 from the CIO.com database on the Website: http://www.cio.com/article/17143/.

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