Managed Security Services - Part I: The Benefits of Outsourcing Security

Managed Services - Outsourcing

As the threat of computer-initiated attacks increases, and as regulators put more pressure on financial institutions to shore up their information assets, financial institutions are turning toward outsourcing their information security functions to third party processors. These outsourcing deals, which are often part of a larger IT infrastructure outsourcing deal but can also be standalone, are being done for the same reason financial institutions have outsourced other parts of their operations, such as check processing: to mitigate risk by placing control of a key operation in the hands of highly-skilled practitioners.

"The outsourcing of information security makes sense to organizations that have a highly developed concept of risk," says Prosenjeet Banerjee, VP and head of information security at HCL Technologies, an IT outsourcing firm based in India. More than half of its clients are financial institutions.

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