Security Outsourcing: Risky Business for Businesses with Risks?

| About: SAP AG (SAP)

by Audrey B.
When I first heard the words “Security Outsourcing” together, the first thought that came to my mind is the word oxymoron. Don’t get me wrong, I don’t have anything against the enterprise; it’s just that putting the two words together seemed rather contradictory to me. Anyway, the reason I bring this up is because I recently read an article on how Forrester Research (NASDAQ:FORR) speculates that security outsourcing may be the newest trend in outsourcing for 2010, dispelling previous notions that security outsourcing is in decline. To define the term briefly, security outsourcing is the process of hiring an outsourcing company that handles security such as SAP (NYSE:SAP) or data management to maintain data security for your company. And according to Forrester Research, this is the next up and coming trend for outsourcing.

With this in mind, Forrester has pointed out that although companies may outsource their security, the accountability for the protection of the data needs to still remain with the company and not the outsourcers. This is essential to inspire constant vigilance on the part of companies availing of outsourcing services.

Another thing Forrester points out is that although a company may outsource their security, the data management itself will still remain with the company as well. Thus the responsibility and future hassle in maintaining organization and efficiency will still remain in your corner.

These are just some of the points to consider in the greater world of security risk companies, wherein you may face paying fines of up to 500,000 pounds like what may happen in the UK. Just looking at recent news, there are cyberattacks; case in point is Google (NASDAQ:GOOG) in China, and there’s the hacking of financial data like what happened to Citigroup (NYSE:C).

Thus, companies who do outsource should be aware that the management of security outsourcing should be a hand-in-hand ploy, a relationship between the company and the outsourcer, in an effort to maintain best practice while saving on cost. Because right now, let's face it, even with all the precautions that are employed, there is still a substantial risk when shipping data from the company to the outsourcer. There is still a substantial risk in handing over the reins of your security to an outsourcing company. And there is no ‘magic wand’ solution to your security and data management. Part of it is determining how your company stands security-wise and understanding that the world has changed and information can no longer be just ‘restricted’. And although we have our own preconceived notions about outsourcing and security, putting the two together would not necessarily mean greater risk if done just right.

Author's Disclosure: None