Outsourcing: What do i need to consider? Advantages & Best Practices

14/09/2022

Outsourcing, Digitization and Information Security

To keep up with the rapid pace of digitization, many companies are outsourcing some of their processes. In addition to the many advantages, outsourcing also offers risks – especially when it comes to protecting your company’s information. In this article, we explain the basics of outsourcing, what advantages and disadvantages it provides, and what you need to keep in mind as a company.

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What is Outsourcing?

Definition of Outsourcing

Outsourcing is a corporate strategy in which a company does not provide all services itself, but contracts external companies to do so. In outsourcing, companies hand over their own processes or even subareas to external service providers.

Types of Outsourcing

All over Germany, more and more companies are deciding to outsource tasks, processes or entire sub-areas. There are different types of outsourcing, which can be divided as follows:

Outtasking (e. g. Software development, Agencies)
Out-Servicing (e. g. Office Support, Callcenter)
Transitional Outsourcing (e. g. Corporate Change Management, Restructuring)
Offshore-Outsourcing (e. g. Conduct operations from an outside country)
Complete Outsourcing (e. g. Search Engine Optimization)
Business Process Outsourcing / BPO (e. g. business processes, administrative activities)
Business Transformation Outsourcing / BTO (e. g. business concepts, consulting)
Application Service Providing (e. g. standardized software and services)

Advantages of Outsourcing - especially in Information Security

Outsourcing offers many advantages. It is no surprise that more and more companies are hopping on the trend. Some of the benefits of outsourcing Information Security Services would include for example:

You can concentrate on your core competencies while the service provider takes care of the outsourced processes.
In addition to specialized knowledge, service providers also have access to qualified resources from their area of expertise.
You achieve time and cost savings because less personnel and time is required.
You achieve higher quality through professional know-how and best practices of the service providers.
Fewer security risks remain due to increased information security.
Improved market position due to a more trustworthy image and more (potential) partners.

Disadvantages of Outsourcing

Of course, disadvantages need to be mentioned as well. However, disadvantages should only arise if the conditions between the company and the service provider were not sufficiently specified in advance.

To avoid these negative consequences when outsourcing, you should make sure that framework conditions, e.g. for communication, are defined in advance and are also adhered to while cooperation.

Why Information Security is important and how to outsource it

Information security is important to every company, no matter how big or small, no matter what industry, and no matter what product or service is provided. Because your information is your most valuable asset. To protect your company information, you should continuously improve your information security.

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Would you like to outsource you Information Security?

We are pleased to support you as an external service provider and handle various tasks related to information security for you. In addition to our solutions for data protection, backup and cyber security, we also offer …