Explain why reduced security is an outsourcing risk.
What will be an ideal response?
Information outsourced to off-shore IT vendors raises unique and serious questions regarding internal control and the protection of sensitive personal data. When corporate financial systems are developed and hosted overseas, and program code is developed through interfaces with the host company's network, US corporations are at risk of losing control of their information. To a large degree US firms are reliant on the outsourcing vendor's security measures, data-access policies and the privacy laws of the host country.
PTS: 1
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Fill in the blank(s) with the appropriate word(s).
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