Acknowledging risks when deciding to outsource business processes : the case of data theft

Rouse, Anne 2006, Acknowledging risks when deciding to outsource business processes : the case of data theft, in ANZAM 2006 : Proceedings of the 20th Annual Conference of the Australian and New Zealand Academy of Management : 6-9 December 2006, Central Queensland, Australia, ANZAM, Lindfield, N.S.W., pp. 1-12.

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Title Acknowledging risks when deciding to outsource business processes : the case of data theft
Author(s) Rouse, Anne
Conference name Annual Conference of the Australian and New Zealand Academy of Management (20th : 2006 : Rockhampton, Qld.)
Conference location Rockhampton, Central Queensland
Conference dates 6-9 December 2006
Title of proceedings ANZAM 2006 : Proceedings of the 20th Annual Conference of the Australian and New Zealand Academy of Management : 6-9 December 2006, Central Queensland, Australia
Editor(s) Kennedy, Jessica
Di Milia, Lee
Publication date 2006
Conference series Annual Conference of the Australian and New Zealand Academy of Management
Start page 1
End page 12
Publisher ANZAM
Place of publication Lindfield, N.S.W.
Keyword(s) BPO
outsourcing
data theft
benefit/cost
business case
Summary Outsourcing is generally framed in terms of benefits and cost savings, rather than risks. One important risk is “data theft”. This paper draws upon a longitudinal study into IT and business process outsourcing to present a theoretical model incorporating risk. Sources include qualitative interviews with purchasers, non purchasers, and vendors of outsourced business process services. It concludes that data theft is an under-acknowledged risk in all business process outsourcing (BPO), but is higher for offshore outsourcing. This risk may be mitigated, but when factored into the business case can invalidate typically small cost savings. In acknowledging and adequately costing this risk, decision-makers may find BPO, particularly where offshore vendors are involved, less attractive.

ISBN 1921047348
9781921047343
Language eng
Field of Research 080609 Information Systems Management
HERDC Research category E1 Full written paper - refereed
Persistent URL http://hdl.handle.net/10536/DRO/DU:30006083

Document type: Conference Paper
Collection: Deakin Graduate School of Business
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