Contracting or Using Outsourced Processing

The following issues should be considered if your organisation decides to outsource some or all of its computer processing.

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  • Inadequate performance can threaten your organisation's information processing and business operations.

  • Determine the critical success factors for your organisation in terms of speed, reliability, response and ability to scale rapidly (if necessary).
  • Document these factors in a Service Level Agreement with penalty clauses for breaches.

  • Poor reliability threatens the performance of your business.

  • Consider your organisation's tolerance to system non-availability; seconds, minutes, hours or days?
  • Ensure that the service provider can meet these needs.
  • Document these factors in a Service Level Agreement with penalty clauses for breaches.

  • Lack of direct control when outsourcing can compromise data confidentiality.

  • Due diligence should be exercised to ensure that the outsourcing company is reputable and operates with adequate standards.
  • Obtain a Non Disclosure Agreement from the outsourcing company.
  • Insist on secure transmission methods between your organisation and theirs, e.g. authenticated transmission with encrypted data.

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