One of the most significant risks is the potential for breaches of confidential information.
Outsourcing often involves sharing sensitive company data with third-party vendors, increasing the risk of data misuse or leaks.
Why This Risk is Common:
Outsourcing partners may not have the same level of security measures as the organization.
Compliance issues can arise if vendors do not adhere to industry regulations.
Incorrect Options Analysis:
B. High cost of developers' salaries: Outsourcing is generally cost-effective compared to in-house salaries.
C. Lack of flexibility: Many outsourcing providers are designed to adapt to changes.
D. Short-term contracts: While challenging, these are manageable compared to confidentiality risks.
References and Documents of Information Technology Management:
"Mitigating Outsourcing Risks: Confidentiality and Compliance" (Gartner).
ISO/IEC 27001 Security Standards (Data Protection in Outsourcing).
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