Managing Information Technology Security in Global Organizations

Managing Information Technology Security in Global Organizations

Introduction

Management teams in organizations are implementing global strategies that enable them to benefit from the international market success in global e-business or e-commerce. With a growing labor market abroad and a challenging economic situation in the U.S. and other developed countries, top-level managers in large and small organizations are making the move to outsource professional services to highly skilled personnel in less expensive labor markets abroad. This move toward the outsourcing strategy is due to recent and continuing technological advancements that provide the support for various activities to take place as easily in one part of the world as another As management teams in both public and private organizations continue to make major changes to their corporate strategies, they also deal with the challenges accompanying the opportunities presented in outsourcing (Blokdijk & Menken, 2008).

These challenges exist in the form of constraints and risks; globalization issues; rapid technological changes; and others that influence the decision-making process. Top-level managers in these organizations consider the implementation of basic competitive strategies using Information System and Technology (IS/T) activities to create an impact through cost leadership with innovative development of low-cost products, services, and market niches. The resulting growth leads to possible alliances established through business links with partners and other stakeholders through acquisitions, joint ventures, and mergers. However, the concern about security in offshore outsourcing continues to rise and the world-wide differences in the generally accepted security standards in offshore outsourcing present a difficult task for decision-makers in outsourcing IS/T services. Since risk tolerance varies depending on the organization, demanding organizational culture (guided interpretations and actions) also contribute to how extensively management of the organization set up required security measures. Additionally, the lack of trust in the legal and regulatory environments obtained in some countries has resulted in management of organizations perceiving a significantly higher security risk (Baxter, 2009).

Global Competition

Competitive challenges are noticeable in businesses as well as other aspects of operations that employ the use of IS/T services. These challenges contribute in vital ways to how managers approach strategic planning to enhance organizational performance. The effects of these challenges also generate uncertainties that lead to management teams having trouble in running the organization against fierce competition. These are in addition to the pressure to make employees more productive, operate with lower costs that benefit stakeholders, and provide better services to customers. In the last two decades, management teams of organizations have observed offshore outsourcing become a major trend in their operations, resulting in a wide spread move toward globalization at most organizations. These managers outsource a number of functions due to the potential source of value created, and the competitive advantage provided in scale without mass, focus, disruptive innovation, and strategic repositioning. Some of these functions include human resources, IS/T activities, financial activities, health care processes, and other related customer service-based activities (Boyce & Jennings, 2001).

IS/T operations form a great part of the organization's strategy to compete, thereby qualifying ...