Although every organization and business enjoys the benefits of IT outsourcing, over time, awareness of the disadvantages and threats related to the risks of outsourcing has also increased. The focus was on the vulnerability of these risks and threats. In fact, security issues needing to be part of outsourcing is nothing new. So, anyone looking at outsourcing needs to think carefully. It is very important and essential to understand the risks and take all reasonable steps to keep them to a minimum. The risks and threats associated with outsourcing are as follows. Risk of workers Any company is always exposed to risk. And the same goes for outsourcing. IT outsourcing can be classified as an example of a risky business activity. While attacks and business risks by external parties are more publicized, attacks and risks committed by internal parties are very common and often harmful. Regardless of the benefits that can be achieved through IT outsourcing, it can also lead to undesirable outcomes such as increased costs, decreased service levels and loss of expertise. The business and society will face losses equal to the cost of the outsourced project if these risks are not managed properly. Not only that, the damage done can cost the company not only in economic terms, but the company's reputation could also be tarnished. This is due to the fact that most insiders pursue clients' proprietary and confidential information assets or the company's intellectual property, which could be much more costly than losses in terms of money. How to Overcome Insider RiskAs Insider risk and threats have become popular over the decade, experts and researchers have come up with several methods and programs to overcome the middle of paper and unattainable. Opportunistic Repricing When a customer enters into a long-term contract with a supplier, the supplier at some point changes the financial terms or charges excessive costs for unexpected contract improvements and extensions. Opportunistic renegotiation becomes possible when one party comes to enjoy an unanticipated increase in power. The party in power can exploit the strategic vulnerability of the other, for example the customer can decide to pay less or the seller can ask for more. How to Overcome Opportunistic Repricing It is important that the customer has a good understanding of the resources and contracts given to the seller. Therefore, the seller will certainly complete only the assigned task and will not manipulate the contract. The client must also have a high degree of strategic vulnerability that allows the contracting authority to be in the client's power.
tags