IT Outsourcing - A Risk to Business Continuity?

On September 15 2008, top US investment bankBCP/DR plan, and that it includes any equipment
Lehman Brothers filed for Chapter 11 bankruptcyservices it provides you. Remember, nothing is
protection. Founded in 1850, in 2007 Lehman Brothersimpossible, and the more eventualities you can factor
achieved record net revenues, net income andfor the better.
earnings per common share for the fourth consecutiveIn the current economic climate many companies may
year. In less than one year Lehman Brothers saw theirsee outsourcing as a way to reduce costs, however it
once record net revenue plunge to $6 billion in the red.should be remembered that you must never outsource
The question isn't how does a mammoth organisationaccountability; at the end of the day, the senior
such as Lehman Brothers find themselves in thismanagers/directors of a company are where buck
position but, in the current climate where seeminglystops, solely accountable to the business, its customers
financially stable firms are filing for bankruptcy, who isand its employees.
your business safe with?Keeping your critical systems in-house and employing
Many businesses outsource (their IT) for variousinternal IT staff capable of running these systems is
reasons; cost savings, operational expertise, capacityone way to ensure business continuity. Helpdesk and
management to name a few. Outsourcing firms alsominor systems (a system that can be down for a
often offer other services, such as business continuityweek, or can be easily migrated) can be outsourced,
planning and disaster recovery plans. Replicationbut keep these systems simple so if needs be you
between multiple data centres, redundant links, workcan move providers quickly and efficiently. Keep your
space relocation, ISO 27001 and BS 7799 are all good,options open and keep an eye on your providers for
but what happens when the company providing thatsigns of potential problems. This shouldn't fall under the
service ceases to trade? Suddenly you're in a positionIT Managers remit only however, senior manager and
where it takes weeks to get equipment back, youdirectors need to take a real interest in providers and,
struggle to get support and the whole affair leads toafter all, they have the relevant skills to assess the
hundreds of hour's worth of downtime, and possiblyprovider's stability.
bankruptcy for your own company. The possibilitiesIn today's gloomy economy anything is possible and
are endless and the scenarios frightening.the seemingly mighty have, and will continue, to fall. A
So, how can you safeguard your business? To startdynamic, reserved approach to outsourcing whilst
with, you need to think about how the company wouldmaintaining internal ownership of critical systems and
cope if its provider ceased trading. This means youover all accountability, internally and externally, is
need to have your own BCP/DR plan created by youressential. This will enable your business to make
company or a 3rd party, but not by the provider. Yousavings and ensure business continuity -and survival- in
also need to ensure that your provider has its ownthese turbulent times.