blog




  • Essay / Benefits of IT Outsourcing - 1065

    As all organizations and businesses enjoy the benefits of IT outsourcing, the awareness of the downsides and threats of outsourcing risks has also increased over time. over time. Emphasis was placed on the vulnerability of these risks and threats. In fact, security issues should be part of outsourcing is not new. So, anyone considering outsourcing should think carefully. It is very important and essential to understand the risks and take all reasonable steps to minimize them. The risks and threats associated with outsourcing include the following. Internal risks Every business is always exposed to risks. And the same goes for outsourcing. IT outsourcing can be classified among the examples of risky business activities. While third-party attacks and business risks are more publicized, insider attacks and risks are very common and often damaging. Regardless of the benefits that can be gained from IT outsourcing, it can also lead to undesirable consequences such as increased costs, decreased service levels and loss of expertise. The company and the company will incur losses equivalent to the cost of the outsourced project if these risks are not managed properly. Not only that, the damage caused can also cost the company not only in terms of money, but the reputation of the company itself could also be tarnished. This is because most insiders seek out clients' proprietary and confidential information or the company's intellectual property, which can be much more costly than losing money. How to Overcome Insider Risks Given the risk and threats of insiders have become popular over the decade, experts and researchers have come up with several methods and programs to overcome the insider middle of paper...... safe and inaccessible. Opportunistic repricing When a customer enters into a long-term contract with a supplier, the supplier changes the financial terms at some point or charges additional fees for unforeseen improvements and contract extensions. Opportunistic renegotiation becomes possible when one or other party benefits from an unanticipated increase in power. The party in power may exploit the other's strategic vulnerability, for example, the customer may decide to pay less or the seller may demand more. How to overcome opportunistic price changes? It is important that the client understands the resources and contracts awarded. to the seller. Therefore, the supplier will only complete the given task and will not manipulate the contract. The client must also have a high degree of strategic vulnerability that allows contractual power to be under the client's power..