The Overview of Outsourcing | Study

Running head: INFORMATION RISK MANAGEMENT 1
Information risk management
Name:
Institution Affiliation:

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Executive Summary
The information technology has become an important part of any organization in every industry
of the economy. In this report study it is based on the overview of outsourcing the major
information technology functionality particularly to the 3rd party in Aztek Corporation. This
entity is a business which operate in the financial service industry in Australia. The organization
intends to implement the project on outsourcing of the main information technology functionality
to the third party. Some of the IT functionality they intend to outsource are the network,
management of desktop or the application development to the third party. These aspects when
they outsource from the third party will help the organization to save on the cost of purchasing
their own and be able to compete efficiently with other organizations, along with the reduction of
operational costs. Moreover, this will allow the organization to operate successful when they
outsource their IT functionality to the 3rd party vendors. Aztek outsourcing on these
functionalities would help change on the cost which are varying to the fixed cost for the
operations and they would be able predict and run the organization smoothly. As much as
outsourcing may be beneficial to the organization they may encounter issues related to the
sharing of the data to the third party who might comprise or steal the data if proper mechanism
are not implemented. This usually happen since the vendor has an access to the clients data as
well as other sensitive information that could be related to the business operations.
It is also evident when an organization outsource such information to the third party there would
be issues of auditing aspect to the information security with the project of the outsourcing IT
functionality particularly in the operational procedures in the financial industry. Majority of the
business could fall to formulate an agreement of obligations with the 3rd party vendors during the
process of negotiation. In the event that the system cashes or the data is breached if there is no

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agreement to address the same the vendors may not take responsibility of these shortcomings
rather than the company that had outsource their services. There is need for Aztek to therefore,
put their offshore operations in control to be able to address on some of these issues. Moreover,
there is need to negotiate about the access privileges. In this report therefore, will examine how
outsourcing of the information technology functionality would benefit Aztek, the current
exposure the company is facing, vulnerabilities, and threats of this project, the issue of the data
security and security issues relating to outsourcing. The report would also provide a brief
overview of the benefits that Aztek would benefit from when they outsource.
Index terms: IT functionality, desktop management.

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Table of Contents
Introduction.................................................................................................................. 5
Review of the financial service industry..............................................................................6
Current information technology practices and the security posture review in Aztek organization...8
Benefits and drawbacks associated to outsourcing..............................................................11
The threats, vulnerabilities and the consequences of assessment.............................................12
Threats of outsourcing the information technology services..................................................13
Vulnerabilities of outsourcing the information technology services.........................................14
Consequences of the assessment of outsourcing the information technology services..................15
Consequences........................................................................................................ 16
Consequences........................................................................................................ 16
Consequences........................................................................................................ 17
Consequences........................................................................................................ 18
Data security............................................................................................................... 18
Conclusion.................................................................................................................. 19
References................................................................................................................... 21

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Introduction
The 21st Century has brought about all embracing convergence when of communication,
computing, knowledge as well as information. This will definitely change on the way individual
live, think and even work (Duhamel, Gutiérrez-Martínez, Macias-Figueroa, Luna-Reyes &
Picazo-Vela, 2017). The growth of the high speed networks, which has been coupled to the
decline in the cost of the computing power has made application undreamed in the past. The
changes which the new technologies have brought the financial sector an enormous in their
impact on the employees, as well as the customers (Gobble, 2013). The financial sector has been
gaining a competitive advantage due to the aspect of information technology advancement.
The information technology risk management has been a significant aspect when it comes to the
risk management within a business. The information technology can be able to manage on any
risk which has been associated to the information technology sector such as the desktop,
networking or even perhaps in the computing (Duhamel, Gutiérrez-Martínez, Macias-Figueroa,
Luna-Reyes & Picazo-Vela, 2017). The information technology has been incorporated in the
financial industry over the years. In this report it intends to evaluate the risk management process
which are associated to outsourcing of the key information technology functionalities that is
within Aztek Corporation. Outsourcing will enable them to continue to thrive in the financial
industry in Australia. The organization has a portfolio of various project which they will
implement with the view to automate on their system within their operations (Gobble, 2013).
Some of the outsourcing functionality which they intends to undertake are desktop management
or the application development to the 3rd party along with the networks.

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Review of the financial service industry
Aztek organization is a well-known business that operate the financial industry in Australia. The
organization operates with other organization within the industry and sometimes they are
exposed to many risk which are within the sector. The organization ensures that their reputation
as well as integrity is maintained at all time within the various departments in the business
(Willcocks & Lacity, 2016). Over the years the organization has been encountering stiff
competition from the other financial firms which has made them lose a few clients to the
competitors. The stiff competition which has been exhibited within the business has made them
to change on their operating process. The information technology has been one of the vital
technologies in the financial industry which make the business to automate on their processes. In
the Australian sector it has encountered various information technology system to which have
aided in the delivery of the information, as well as management of the inventory (Willcocks &
Lacity, 2016). When Aztek organization outsource their critical information technology
functions it would help them in the establishment of the wide client base.
If Aztek organization adopt the information technology application in their business process they
would be able to improve on their services to the customer and meets on their every needs. There
are many corporations especially in the financial sector in Australia which have outsourced their
information technology functionality from the 3rd party (Willcocks & Lacity, 2016). This has
helped them to diversify on the processes in the business consequently high profit margins.
When a business achieves high profits they are able to reduce on their complexity level along
with the dependence to the interest which has accrued over the years from their operations.
There has been great success to the financial sector in Australia, and the key for their survival
has been the customer service. The loyalty of the customers has been determined through