Who is your IT outsourcing firm working for?

outsourcing-for-dummiesWhile the U.S. Government has been remarkably opaque about the recently discovered security breach at the Office of Personnel Management (OPM), we know that personal information on at least 21.5 million present, former, and prospective federal employees was lost. The Feds claim Chinese hackers are at the bottom of it, which is disputed by the Chinese government. This, to me, raises a number of questions, especially about the possible role of IT outsourcing firms and implications for organizations beyond OPM. Does IT outsourcing make your data more vulnerable? Yes, I believe it does.

It’s easy to blame the Office of Personnel Management for its own troubles. Oversight was lax. The agency failed a security audit and […]

Some thoughts on how a Grinch stole Target’s Christmas

targetThere was a time when “activist investor” Carl Icahn actually owned and ran businesses, one of which was TransWorld Airlines (TWA), eventually sold to American Airlines. In an attempt to cut costs, TWA under Icahn outsourced reservation service to a call center built in a prison with prisoners on the phone. When you called to book travel you were giving your credit card number to a felon and telling him when you’d be away from home. Smart move, Carl, and very akin to what may have caused the post-Thanksgiving theft of 40 million credit card numbers from Target, the U.S. discount retailer.

Target used to do its IT all in the USA, then to save costs […]