This website uses cookies to ensure you have the best experience. Learn more

Possible Risks Of Outsourcing Essay

1560 words - 7 pages

Possible risks of outsourcing
There is no way around protecting from all known risks from outsourcing but there are certain items that can help slow down the issue. There are going to be times when recommendations will not be accepted or appealingly to certain situations. We will go on and explain different risks that may or may not occur and some recommendations for different risk mitigation strategies.

External service provider for data storage
There are different types of people that want an easier way to store data and this is where flash drives com into the scene. The flash drives are small enough to carry with you and store data from your computer to ...view middle of the document...

Educating the employees of the potential risks that are involved when using flash drives and how to use flash drives properly is a practice for every company.
Also to prevent the theft level for flash drives try to put a security feature that will request a fingerprint or a password to unlock the data that is stored on it. These security features have been used by a lot of different companies no matter the size. By reason of that, all companies have something to protect, if that is data, employees, or their customers.
The use of Enterprise service provider for processing information systems applications
With this section we will discuss more on privacy than anything else. Some of the concerns or risks that may be involve when it comes to privacy and the use of enterprise service provider for to process information systems applications is that when a another company us using a software/program that can support your payroll department or the human resource department, than this can cause an issue and several risks because this means that the other party will have access to all the information and data in that system that can use for their own purpose such as selling the information to other people.
Order taking the same thing can happen, with this part the other party/ third party can take the information of the customers and sell them to other companies that will send the customers spam mail or can also steal their payment card that is on file.
Risk mitigation strategy
Here is a risk mitigation strategy that should be put forth to save the customers information; Use tools that are specifically for preventing fraud related incidents. There are different types for large, small and medium size companies, for an example; “The Address Verification Service (AVS) is a risk management tool that enables merchants accepting card payments in a non-face-to-face environment (e.g. e-commerce, mail order and telephone order [MO / TO]) to verify the validity of the billing address provided by their customers by comparing it to the one on file with the card issuer. Using AVS helps card-not-present merchants minimize fraud and fraud-related chargebacks” (UniBul Merchant Services, 2011). This method will help customers feel protected when making purchases online.
Venders to support desktop computers
When looking at a vendor that will support desktop computers there are several areas to look like the time management, the cost management and even the quality of the work. Here are a few that a risk management might have to consider when looking into a vendor to hold up the structure of the desktop computers;
* Amplify to the time to answer an incident ticket or trouble ticket that someone may file if there are any problems with their desktop computer.
* There could be some communication obstacles that may happen only because when dealing with the vendor over the phone it...

Other Essays Like Possible Risks of Outsourcing

Outsourcing Essay

3957 words - 16 pages the HR department are too comprehensive and complex that they cannot be maintained or get in hold in-house hence they prefer the options of outsourcing this non-core works and eventually supporting to the company’s bottom-line (Sheehan 2011). In the present competitive scenario, organizations possess a very competitive task to cut cost and save where ever possible without affecting the normal operation of the organization. The HR department bears

Iowa Case Essay

4282 words - 18 pages expertise of vendor with outsourcing contract”, “Asset specificity”, and “Small number of vendors” do not have a significant relationship with negative outcomes. Finally, this research also provides several major recommendations that IT outsourcers must acknowledge and implement in order to manage IT outsourcing risks and get the most benefit from IT outsourcing as possible. II. LITERATURE REVIEW Index Terms—Agency theory, IT outsourcing, IT

Outsourcing

2739 words - 11 pages finding and developing this department that can outsource it from more specialized company. 3.1.2 Cost and Efficiency savings Outsourcing will help you to solve the problem of rising back office function that are more complicated. As it’s possible the sizes of the enterprises is not large enough to perform back office function in a reasonable cost, outsourcing is a good idea to keep lower cost. Example: A small doctor's office

Outsourcing Characteristics

1459 words - 6 pages Decision. Retrieved on September 19, 2013 from http://www.streetdirectory.com/travel_guide/17047/outsourcing/factors_influencing_the_outsourcing_decision.html Burger, A. K. (April 2007). Outsourcing, Part 2: Uncovering the Hidden Cost. Retrieved on September 19, 2013 from http://crmbuyer.com/rsstory/57105.html Davidson, D. (December 2003). Top 10 Risk of Offshore Outsourcing. Retrieved on September 19, 2013 from http://www.zdnet.com/news/top-10-risks

Discuss the Concept of Outsourcing, Reason Behind Outsourcing and Its Challenges

3784 words - 16 pages skills. Special programs to rapidly train staff in “hot” skills are also usually in place ii. Predictable costs. In outsourcing, the amount charged is the service unit price multiplied by volume, which means the costs are controlled by the customer. Where significant changes in volume are anticipated, it is possible to pre-negotiate future volume discounts. This move to a variable cost basis is very attractive to many companies as much of the

Computer Security

782 words - 4 pages Computer Network Security Alternatives Computer network security and integrity is a large concern among all types and sizes of companies. The options for solving security risks are as varied as the companies themselves. However, it is possible to break down the methods for dealing with security risks into three major categories. Companies have the option to: 1. Select best of breed products for their various security needs and assemble

Strategic Sourcing at Whirlpool China Case Study Analysis

790 words - 4 pages assumes all of the outsourcing risks. Outsourcing all of the risks, however, usually comes with a very high price. This model can be very expensive for a company because suppliers charge a premium for the inconvenience of having to organize all services. Multiple sourcing, on the other hand, is when a company selects more than one supplier to provide processes or services. Contrary to a single sourcing model, the company assumes the role of

Research Methods

3432 words - 14 pages Outsourcing and sub contracting of services is typically done to reduce costs, but it also holds many hidden risks. In times of high logistics demand the Army has to outsource and or sub contract most of its resources from third party and private companies (Major Sylvester H. Brown, USAR). The process involves contracting out processes to private companies’ tasks that used to be performed by members of the uniformed military. The assignments range

Supply Management Outsourcing

3652 words - 15 pages : • Reduce and control operating costs • Improve host company focus • Gain access to world-class capabilities • Free internal resources for other purposes • A function is time-consuming to manage or is out of control • Insufficient resources are available internally • Share risks with a partner company So, the disadvantages of outsourcing can be obviously seen if any of these reasons or goals are not met when the outsourcing decision has

Contemporary  Challenges  for  It  Managers

727 words - 3 pages   Outsourcing? * Lower operational and labor costs * Improve company focus. * Risk management 15. What  are  some  of  the  negatives  associated  with  Outsourcing? * Managerial control * Is hard to manage an outsourcing service provider * Communications risk * Language is a big problem * Hidden costs * Security risks * Confidential information can be at risk * Changing business/customers

Building the Boeing 787

3078 words - 13 pages for future aircraft models). Case Discussion Questions Do a comprehensive analysis of the case and answer the following questions: 1. Explain in details what are the benefits to Boeing of outsourcing so much work on the 787 to foreign suppliers? What are the potential risks? Do the benefits outweigh the risks? 2. Explain the relationship and the level of importance that exist with Boeing and their suppliers? 3. In 2007 and 2008 Boeing ran

Related Papers

Management Information System Essay

1790 words - 8 pages its early days, seemed possible only by larger companies which farmed out many low-end business processes. Since then, Global outsourcing has become more of a norm than an option. Apart from the cost savings, outsourcing is seen as a strategic move that can allow businesses to gain a competitive advantage. It certainly has opened up opportunities for organizations to utilize skill sets and expertise that they normally would not be able to access

Cisco Based Equipment Essay

1731 words - 7 pages Outsourcing Risks for Huffman Trucking Company Cliff Webb CMGT/442 July 11, 2011 Leroy Hurt Abstract The current analyses of the different types of opportunities at Huffman Trucking Company to be outsourced are great. The major issue is the risks that are involved with each of those tasks that may be outsourced to another company. Just to say we are going to send our work outside the company is not a risk that most companies are willing

Outsourcing By Nike, Telstra And Boeing

1404 words - 6 pages Executive summary: Outsourcing allows company to reduce their cost and gain a competitive advantage and this idea is strongly adopted by companies all over the world. Outsourcing is an agreement in which one company contracts-out a part of their existing internal activity to another company. Outsourcing benefits company because it maximizing company’s resources, more efficient output and make legal agreement for performance guarantees

Out Sourcing Essay

1098 words - 5 pages what criteria should be used by individual firm's management team in order to decide on use of outsourcing. So it is necessary to closely inspect the IT outsourcing decisions made by the firms. * Out sourcing especially for Information technology has been rapidly increasing every year approximately 20%The question of can vendors deliver economic and management benefits to their clients that outweigh contracting costs and risks is critical. A