Question
Read this post: Many companies choose to outsource their information system functions offshore.Some of the main reasons for this are lower operational costs and complimentary
Read this post: Many companies choose to outsource their information system functions offshore.Some of the main reasons for this are lower operational costs and complimentary time schedules offshore.(Bellah, Burns, Cassidy, SNHU Shapiro Library).For example, the average payment for a person employed in India is $189, $207, and $228 per month for an unskilled, semi-skilled and skilled employee respectively.(India Briefing). So, even if a U.S. company is paying a skilled employee, the amount is far less than the cost of employing an unskilled person in the U.S.Also, India is 9 hours ahead of the U.S Eastern Time Zone.This difference makes it easier to have an employee in India speak with a customer in the U.S. at midnight because it will be 9:30am in India.
But there are issues associated with offshore outsourcing of information systems.There are increased security risks associated with outsourcing information.The outsource location may be a shared environment with multiple customers.This poses an increased risk compared to an internal data center where the information is contained.Having a network with multiple clients increases points of exposure.A small exposure can have devastating effects as resources can be shared across all parties. (Alner, n.d.).
An organization has the utmost responsibility in protecting customer's personal information.The Federal Trade Commission (FTC) recommends businesses have a sound data security plan and will issue injunctions and penalties for companies which do not safeguard personal information. The FTC requires companies to abide by the following principles: don't collect or retain more data than you need, tell customers how you plan to use and share their data, give customers choices about their privacy and protect data from unauthorized access.(Federal Trade Commission).LifeLock is an identity theft protection company which is ironic considering they violated FTC protocols.LifeLock was ordered to pay $100 million for failing to protect customer's bank account, credit card and social security numbers.(Federal Trade Commission).
Question: Recommend controls that will mitigate the risks suggested by your peers. Ensure the recommended controls are in compliance with industry standards. USE REFERENCES
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