Analysis of outsourcing and the impact on business resilience

Abstract

Business and corporate resiliency rely on information technology and information systems organizations to outsource the tasks, not the responsibility for adequate service or adequate controls. A key success factor is to outsource procedures and processes tha t are not "broken" or ineffective. As management examines the viability to outsource all or part of the IT services, a successful plan will always prioritize and assess risks associated with what to outsource, then where (required location of service delivery), then who will provide delivery of the service. Successful IT outsourcing must be carefully managed. Therefore, to help control outsource application project costs, make change control a critical component of the project to be managed with the same cost benefit analysis used to decide on a new process in the beginning. This pap er analyzes the risks of outsourcing, trends in outsourcing domestically and offshore, approaches for managing outsourcing, and the legal and regulatory consequences of outsourcing. Each component impacts business and corporation resilience. © 2006 International Federation for Information Processing.