Statement of the Problem

341 words | 2 page(s)

The decision to outsource information technology is largely informed by cost saving measures, increases in productivity as well as quality, ascertained higher customer satisfaction, and the focus on other business core areas. (Dahr & Balakrishnan, 2006) These advantages are, however, accompanied by perceived disadvantages, including, above all, issues of data security. (Dahr & Balakrishnan, 2006) For this reason, the outsourcing of information technology and the accompanying concerns regarding data security is one of the most contested themes in the current academic debate on the topic of outsourcing IT. (e.g., Dahr & Balakrishnan, 2006, Mameli, Miller, Salane & Schwartz, 2011, Rowe, 2007, M.J. Schniederjans, J.L. Hamaker, A.M. Schniederjans, 2010)

On the one hand, a common viewpoint advanced is that information technology endangers data security. (Mameli, Miller, Salane & Schwartz, 2011) On the other hand, it has been argued that data security is not threatened by outsourcing; furthermore, data security can actually improve outsourcing, for example, through the outsourcing of internet technology security itself (Rowe, 2007).

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In this regard, the problem that is to be analyzed is to what extent the thesis that outsourcing of information technology either does or does not endanger data security. In so far as the outsourcing of information technology has proven hugely advantageous to business for the previously mentioned reasons, the resolution of data security issues can either only further underscore the effectiveness of outsourcing strategies or force companies to re-evaluate what their thinking on IT issues. The problem in question is therefore crucial to business management, information technology strategies, and the improvement of data security.

  • Dhar, S. & Balakrishnan, B. (2006). Risks, Benefits, and Challenges in Global IT
    Outsourcing: Perspectives and Practices. Journal of Global Information
    Management. Vol. 14, Issue 3. pp. 39-69.
  • Mameli, P. Miller, S. Salane D., & Schwartz, A. (2011). Security and Privacy: Global
    Standards for Ethical Identity Management in Contemporary Liberal
    Democratic States. Canberra: Australian National University Press.
  • Rowe, B.R. (2007). Will Outsourcing IT Security Lead to a Higher Social Level of
    Security? Raleigh, NC: North Carolina State University.
  • Schniederjans, M.J., Hamaker, J.L. & Schniederjans, A.M. (2010). Information
    Technology Investment: Decision-making Methodology. Singapore: World
    Scientific Publishing.

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