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There are security risks in outsourcing your IT services

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April 6, 2017

According to various research conducted in the last quarter by consultancy firm Deloitte, it appears that outsourced IT firms are to blame for causing major disruptions at one in three major British companies since mid-2014.

The global survey, which included the responses of 107 British firms across different segments of the economy, also revealed that about 79.8 percent of those companies are dependent on outsourcers for their IT operations-– the highest proportion in any country that were surveyed.

About 11.3 percent said they probably feel equipped to deal with such failures and/or security mishaps during times of uncertainty.

However, many companies and several government organizations with critical, information sensitive services continue to rapidly outsource their IT services, despite the associated security risks.

Worse, it appears that few backgound checks if any were made with the oursourced companies that were selected. And the same goes for their overall level of expertise when it comes to internet security, at least for the majority of the selected IT firms that were outsourced to.

Case in point: Lloyds Banking Group is soon to offshore nearly 2,000 IT jobs as part of a major outsourcing deal with IBM. Of course, due to the sheer size of a global public corporation the size of Big Blue, it's a safer bet than utilizing a small IT company with almost no proven track record.

But as revealed by the Deloitte report, the onus is on the company that wants to outsource its IT requirements that needs to do its due diligence before making such an important decision.

Cristian Park, global extended enterprise risk management partner at Deloitte, said the management processes and technology that supports the oversight of these relationships are not keeping up, creating a critical execution gap that can come back and bite them where it hurts the most: the bottom line.

"While there is a clear organizational commitment to address this critical problem, it is not being matched by the right skills, processes and technology to achieve intended results," Park asserted.

Furthermore, Deloitte estimates that most large organizations take between two to three years (sometimes more) to develop a framework for better managing internet security risks. The Deloitte survey identified technology as one of the key areas where greater governance was needed.

But in the case of Britain, Park also commented that in some cases it could take a backseat with Brexit. "In the current economic climate, some people will be focussing mainly on issues such as where they will continue to be located, or assessing talent models, particularly during the two-year time frame in which the United Kingdom intends to depart from the European Union," he added.

Deloitte was recently heavily criticized by the British government after a leaked memo said that civil servants were struggling to cope with more than 500 Brexit-related projects amid various cabinet shuffles.

In the aftermath, Deloitte agreed not to bid for government contracts for six months following a heated debate with prime minister Theresa May.

Source: Deloitte.

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Read the latest IT news. Visit ItDirection.net. Updated several times daily.

If you need reliability when it comes to SMTP servers, get the best, get Port 587.

Get a powerful Linux Dual-Core dedicated server for less than $2.67 a day!

Share on Twitter.


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