Outsourcing has become the order of the day, but alas, many organizations are stepping back, mainly because of security issues. But the good news is that you can outsource and still protect your data when you work with service providers, by following these simple steps

1. A sound security policy

First make sure your organization is in order, before you start outsourcing. Make sure that you have a security policy that is good and at the same time realistic. Your policy should include a data classification that distinguishes between common and sensitive data. The security policy should also include definite standards and guidelines. Finally, ensure that these guidelines have been agreed and finalized by the business managers and information technology professionals in your firm.

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Australian banks, such as, ANZ, St. George, National Australia Bank and Westpac have been thinking about sending their back-office jobs overseas. These banks are now planning to outsource their banking and financial services to India. An analysis of the statements of the four major banks in Australia, by a media report, have suggested that these banks are slowing moving towards outsourcing their processing work, to countries like India, where they can avail of cost-effective services.

The Finance Sector Union in Australia ,recently held campaigns against offshoring. Although ANZ, St George, National Australia Bank and Westpac have been sensitive to these campaigns, they have strongly fortified this move. The banks felt that they needed to consider sending their back-office work overseas, in order to remain competitive in the highly competitive financial market. The only exception to this move is the Commonwealth Bank, which has vouched to stay out of offshoring, as it does not have outsourcing on its agenda right now, although this bank too, has considered outsourcing in the past.

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If your project is confidential and you require specialized skills to handle your project, then you need to consider the Onsite Outsourcing model. This would be the ideal model to follow, if you need constant support and if your project requirements are changeable.

If you are considering 24 hour support, low costs, and have definite requirements, then the offshore outsourcing model will be the best suited model for your organization. An offshore site can be located anywhere in the world. Today the most preferred place for offshore outsourcing is India. In this model, communication is carried out through the following; Phone, Email, Messengers and Video Conferences.

Apart from these two main models, there are some hybrid models, such as the offsite outsourcing model and the hybrid model of outsourcing.

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Ben Trowbridge, an outsourcing expert and CEO of global advisory firm, Alsbridge, has predicted the following outsourcing trends for the year 2007. Before making predictions, Trowbridge reviewed data from customers, providers, government agencies, research firms and trade and business media from around the world. His predictions were evaluated based on labor statistics, birth rates, economic indicators and internal corporate activities.

Trowbridge has predicted that Knowledge process outsourcing (KPO) will experience tremendous growth in the next three years. Another outsourcing service to grow significantly will be Engineering and Research. The outsourcing of procurement will increase as providers begin to achieve a true scale and market shares. Equity firms will again review the acquisition and rationalization of the outsourcing market.

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