ACC 675_ Discussion_ Week 5_ Post 2

Many companies have moved to outsourcing varies company functions. This is done for

many reasons, lack of specialization, cost benefits, frees up time of internal employees.

Outsourcing has many benefits but it also has risk associated with it. This can be done in the

United States as well as offshore outsourcing. Offshore outsourcing is outsourcing the

information and company functions to companies outside the United States. Offshore

outsourcing poses many risk, as the laws that companies in the US have to follow in regards to

data protection, companies outside the US don’t have to. “Outsourcing raises a number of

cross-border legal issues that are increasingly receiving attention from both consumer groups

and governments. One of the hottest issues concerns the relationship between outsourcing and

control that companies can use is a policy and guidelines that have to be met before

outsourcing to a specific vender. This guideline should put comfort in the customers for the

data as well as protect the businesses from legal action. This will be able to lessen the risk of a

data breach as it will only allow them to work with reputable vendors. A downside to this is

that it will exclude some of the cheaper options as well as some areas of the world. The

European Union has a law that “permits personal data to be sent offshore only to countries

whose privacy laws meet the EU’s stringent standards, both in the protections they afford and

country need to have a policy that protects it customers by prohibiting them from using

venders with less than ideal data protection

evolving-concerns