The great India power blackouts of the summer of 2012 left about twice the population of the United States without electricity. For Insurance carriers who depend on Indian outsourcers, these events raise questions about what constitutes due diligence in evaluating the risks and how to appropriately craft service-level agreements for potential exposures.
Historically, disaster recovery required a significant investment in physical infrastructure. Organizations had to balance the risk of not being prepared for a disaster with the cost and level of recovery they could afford. As a result, many executives perceive traditional disaster recovery as an expensive “insurance policy” that is only accessible to organizations with big budgets. Continue reading How Businesses Can Recover From Data Disasters
While there is no denying the importance of disaster recovery/business continuity (DR/BC) planning for any enterprise that wants to minimize the impact of unplanned disruptions, it is also a given that there is no one right way to achieve an effective DR/BC strategy. An organization’s specific recovery time objectives will drive the selection and allocation of technologies, personnel and facilities best suited to its own DR/BC requirements. Beyond choosing the right combination of tape-, disk- or cloud-based backup, for most organizations the overall approach to disaster recovery involves an even more fundamental decision: whether to manage and perform the entire process in-house or to outsource selected functions to a qualified service provider.
Business continuity’s origins can be found in IT departments, typically with IT disaster recovery. However, in recent decades, IT has become an increasingly siloed activity within organizations, separated from the business operations of the organizations which it serves. As the current economic environment pushes more and more companies toward outsourcing their IT capabilities, have we now lost visibility of the risks inherent in our existing IT processes and are we blind to the risks posed by new technologies?
Egypt was dubbed an up-and-coming outsourcing destination by industry watchers in late 2010. But this week’s dramatic political unrest puts that reputation at risk — and serves as a warning to IT to plan for the geopolitical risks that can flare in offshore outsourcing locales.
Cost reduction is a key business consideration in these difficult economic times and it is one of the key reasons why outsourcing is being pursued. This makes it a good moment to have a look at outsourcing from a business continuity management perspective; because as well as the potential major business benefits, outsourcing also brings significant risks to continuity of business.