Misuse of data

Information security has become a top concern for companies evaluating current and potential outsourcing, according to a study of 158 senior US executives.

by Booz Allen Hamilton
Last Updated: 23 Jul 2013

Companies are more concerned about theft or misuse of outsourced data than about the threat of terrorism. They also perceive a significantly higher security risk to data in working with offshore providers than with those in the US, because of lack of trust in developing countries' legal and regulatory environments.

Most respondents say they would be prepared to pay 10%-15% more to be assured of higher security, and they rank the issue as more important than the financial strength, business stability and reputation of prospective partners.

At the same time, many companies are sceptical of the security claims of outsourcing providers and say that security management requirements need to be defined in contracts.

They also regard third-party audits and independent security evaluations as important and want to see industry standards defined and established.

Information security risk: a top concern among outsourcing executives
Booz Allen Hamilton, 23 March 2006

Review by Steve Lodge.

Booz Allen Hamilton recommends

Booz Allen Hamilton

Read more

Find this article useful?

Get more great articles like this in your inbox every lunchtime

Lockdown stress: 12 leaders share practical coping tips

In hard times, it's far too easy for the boss to forget to look after...

Don’t just complain about uncertainty, find the tools to navigate it

Traditional in-person research methods won’t work right now, but that’s no excuse for a wait-and-see...

How well have CEOs performed during the coronavirus pandemic?

A new survey offers a glimpse into what their staff think.

Why women leaders are excelling during the coronavirus pandemic

There is a link between female leaders and successful responses to COVID-19.

Why your employees don’t speak up

Research: Half of workers don’t feel comfortable to express concerns - and it’s usually because...

How to bounce back quickly after the lockdown ends

Never has a clear strategy been more important, says change consultant Jeremy Old.