Offshore Outsourcing
Offshoring IT is a way to reduce costs, but at the same time it puts the company at risk for
pricing issues, employee retention, and data leakage. A key fact that may cost the company in
lost revenues would be the barrier to language that could exist with offshore staff. Other things
that would come in to play in the offshore IT environment is that the staff is ‘not present’ to fix
computers and equipment if the need arises, as well as cultural and time differences.
(Ovcharenko, 2020). Confidentiality and privacy concerns can be addressed through internal
controls procedures, as well as testing those controls. Employing a security officer is another
way to ensure a secure system, as this person will conduct regular reviews of the system.
Customer Privacy
Customers are a business’s most important asset, so protecting their information is critical to
the success of that business. I think that many customers, once their data is compromised, may
not shop at the business again, especially when they can get the same item someplace else and
not be at risk. According to Keiningham, (2019), “Customers are the ultimate asset for all profit-
making organizations and they provide all of a company’s real value. Paradoxically, customers
are one of the few aspects of a business that are not managed as an investment” (Keiningham,
2019).
Keiningham, T., & Aksoy, L. (2019, January 24). Managing Customers as Assets. American
management
association. https://www.amanet.org/articles/how-to-manage-your-business-s-greatest-
asset-your-
customers/#:~:text=Customers%20are%20the%20ultimate%20asset,not%20managed%20
as%20an%20investment.
Ovcharenko, S. (2020, December 19). IT offshoring pros and cons. benefits, risks and
limitations. Alcor.
https://alcor-bpo.com/your-own-rd-office-news/offshoring-
benefits/#:~:text=IT%20companies%20may%20risk%20data,limitations%20of%20the%20
offshoring%20process.
