'Uneasy' CIOs Reconsider Outsourcing; Bring IT Security In-House

Back Published 2010-06-21

London — June 21

Increasing unease over the security of outsourced IT is leading CIOs to consider bringing management-related technologies in-house, according to Ovum.

A recent global survey by the independent technology analyst has found that organizations are contemplating reducing the outsourcing of security and other IT management applications.

The findings of Ovum’s Technology Trends survey are contained in a new report titled
“CIO Investment and Outsourcing Priorities Have Shifted Post-Recession.”

Of the more than 500 CIOs surveyed, only 7 percent said they were considering outsourcing IT security over the next two years, down from 18 percent currently.

Rhonda Ascierto, author of the report and senior analyst at Ovum — a telecoms, IT services and software company — described the planned reduction in IT security outsourcing as one of the most striking trends revealed by the survey.

“The main reason for this shift away from IT security outsourcing is most likely a lack of confidence,” Ascierto said. “Organizations are now more subject to compliance considerations in the form of both formal external and internal policy-driven requirements, particularly in the wake of the U.S. banking controversies and other financial scandals.

“Some may find it difficult to obtain a measurable security metric from an outsourced provider because security is often reported only after negative security occurrences. If security is not breached, then there is nothing to report.

“The reversal of outsourcing security is also likely to be due to some organizations grappling for more control over their IT operations, of which security is a central aspect.”

Additionally, contractual clauses from outsourcers often do not give the quantitative assurance that organizations need or desire. This may be viewed as a problem with IT outsourcing in general, rather than IT security specifically, since any failings impact the whole business while the contract is limited to the aspects of the IT operation that are outsourced.

Ovum believes this may have contributed to growing unease about the security of outsourced IT in general, with IT security outsourcing simply being the first part of the spectrum to feel this change of mood.

Ovum’s biannual CIO Technology Trends survey provides insight into the trends of global IT spending by organizations across various countries and vertical industries. The survey, which has been conducted since 2006, tracks the attitudes of IT decision makers around the world toward current and future IT budgets and investments.