Rising Security and Budget Issues in IT Outsourcing

Published: 13th October 2011
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In present economic slowdown period importance of cost cutting and outsourcing has come to dominate the business thinking process of the decision-makers at any enterprise. Most importantly IT outsourcing pitch has become more vehement and assertive recently where increasingly business growth and profits are now directly dependent upon software development companies. The customers who frequently access their IT services tend to expect highly superior IT solutions at remarkably low rates.

But, various surveys propound that there have been decreasing level of innovations and quality that have raised not just security issues but budget concerns as well, which are also affecting overall software development process. Same surveys also asserted that IT companies have upgraded themselves with burgeoning software technologies and innovative knowledge resource to deliver highly successful IT resources. However, these IT companies have ignored improvements in project management system, entrenching strong IT-business relationship and optimum IT strategy planning and conceptualization.


In the aftermath of economic depression demand for lower rates is increasing and simultaneously, quality control and assurance at the software development companies is decreasing, which is impacting gravely the customer’s enterprise management and business system. Thus, investment in IT is turning into loss which may derail efforts to survive in tough times and also jeopardize business altogether.

So, again coming over to security and budget issues in IT outsourcing, how customer can avoid this situation and keep their policy for low-cost IT outsourcing intact?

The most accurate answer to this question is not only difficult but nearly impossible as this question is in a way lopsided that favours only customers not vendors. Therefore, to mitigate threats to security and issues in budget in outsourced IT project both vendor and customer need to sit on same table and radically change their mindset from profit-centric mentality to innovation-centric mindset and perspective.


What an IT solutions vendor should do?
IT companies claims to provide successful and productive software development solutions, but frequently execs of enterprises has complained with evidence that IT resource at their enterprise do not offer effective business orientation and opportunity to enlarge business prospects. Thus, IT service providers need to work robustly on honing business advantage of software development by making IT business-friendly and righteously profitable in terms of investment.

Lastly, security issues need serious considerations as cyber hackers are now emerging threat to complete IT structure at enterprises with recent attacks on Sony and Citibank. According to experts, such incidences of security lapse and vulnerability can be reduced or prevented if testing and quality assurance at the software development company is comprehensive and robust.

What an outsourcing customer should do?
It is often seen that an outsourcing customer usually overstress upon on cost-budget issues without considering genuine quality issues of IT service provider. Hence, if project is approved and development of software initiates, the IT vendor compromises with testing, quality assurance and many other components in the development process. Therefore, end product comes out filled with glaring loopholes that could easy be exploited by hackers to destroy IT system completely. So, an outsourcing customer should press upon low cost but shouldn’t overstress it.

Shriv ComMedia Solutions is a responsible software development company from India. SCMS has completed many complex software development projects with aplomb for various small, mid-sized and large enterprises, and government agencies. We also offer web solutions, web development, embedded solutions and multimedia services.

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