Do you know the Risks Involved with Technology Outsourcing?

Technology outsourcing is the procedure of getting part or all of your technology functions done by another-party firm. You have to consider all risks involved before you decide to fire your technology staff and delegate you technology support functions to lessen costs. Research done by the College of Missouri in 2000 reported which more than 35 % from the outsourcing plans unsuccessful. 1. Things I advise is selective outsourcing. Keep an adequate amount of your knowledge of-house, delegate why is sense.

The primary regions of concern are dependency and insufficient control, information security and legalities. When you fire all of your technology staff making the switch, it might be tough to convince you, make changes or seek a brand new partner. The 3rd party vendor holds all of the cards and you will no longer have in-house expertise. They essentially have the ability. The 3rd party vendor can raise charges as contracts expire and you’ve got no leverage to barter.

Dependency and Insufficient Control – The very first factor you loose whenever you delegate is control. The opportunity to make changes towards the network, systems or any technology or services are greatly limited and could need a new contract.

Information Security – Any emails, documents, client lists, financials, documented competitive advantages, trade secrets, projects within the works are actually at the disposal of a 3rd party. Any breach of the data might have severe harmful effect on your image, company status and financial health. You’ve got no method to determine if the 3rd party takes proper steps to safeguards your computer data or are cutting their costs. Your computer data may be easily mishandled, stolen or lost and you’ll not be notified for anxiety about retribution. They might make use of sub-contractors which have little interest in protecting your computer data and who could see an chance to create a quick make money from your personal information files. This occurs more with non-US based firms particularly in India.

Legal Effects – The legal effects would be the finest threat for an organization that outsources its infrastructure. Most outsourcing firms offer services on the “out of the box” basis meaning they aren’t responsible for the outcomes of the services. If there’s a breach of confidentiality, data loss, the outsourcing firm isn’t liable.

Fiduciary Needs – Any fiduciary needs you will probably have together with your clients don’t affect a 3rd party vendor. A careful assessment needs to be reviewed from the risks before proceeding with a 3rd party vendor.

Copyright Violation – Copyright violation is yet another potential liability when software programs are distributed to the outsourced firm.


Things I recommend is selective outsourcing. Keep your key understanding internally and also have a local outsourcing firm perform the heavy-lifting. Work with a nearby credible technology firm which has just as much to achieve while you do in the arrangement. Talk to as numerous clients from the 3rd party as you possibly can who’re within the same industry and therefore are of comparable size. You could contact we and us will gladly provide you with a free consultation as well as point you within the right direction!

Sylas Tiana
the authorSylas Tiana