Sunday, October 7, 2007

The Hidden Dangers of Offshore Outsourcing

The economic imperative has driven businesses in recent years to embrace offshore outsourcing. This practice is particularly prevalent in the areas of IT services and customer interfaces (call centres).

A recent report by the Australian Government Institute of Criminology entitled Future Directions in Technology-Enabled Crime, 2007-09 highlights some of the hidden dangers of this, if security implications are not recently managed.

Delegates attending the recent Security Management Stage 3 Course at ARC Training we reminded of the need to carry out thorough due diligence as part of the offshore outsourcing. The SM3 session, entitled IT Security – the Next Five Years, pointed out two exposures identified in the report, which were of particular concern when offshore outsourcing to developing countries:

(i) Immaturity of national IT security legislative frameworks

(ii) Ability (or intention) of state intelligence services to penetrate the venture with the aim of capturing proprietary data.

A full copy of the report can be obtained from:


The next Security Management Stage 3 Course will take place in Dhaka, Bangladesh, 2-13 December 2007. For details contact David or Janet.