United States

Avoiding risks when choosing a managed Information Technology services provider


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Small to midsize companies are implementing managed information technology services strategies at a growing rate, capitalizing on efficiencies and cost savings by outsourcing specialized and noncore functions. However, as the amount of provider and technology options grow, organizations must understand how to choose the right provider and manage capabilities and limitations. Managed information technology services can provide, many benefits, but companies must implement a thorough strategy to ensure the proper services are delivered and risks are effectively mitigated.

Outsourcing is on the rise because many companies have trouble keeping up with innovation, but require enhanced features and functionality to stay competitive. In-house knowledge is often limited and hiring and retaining information technology talent can be difficult. Turning to external resources can expand capabilities, but without the proper oversight, outsourcing can actually increase risks, rather than reducing them.

Potential risks from choosing the wrong managed information technology services provider include large-scale data breaches, data ownership issues and data loss. In addition, many organizations do not realize that managed services agreements transfer responsibility for control performance, but do not normally relieve the company of liability for data, operational or reputational risks. Organizations must take proactive steps to increase knowledge and leverage available resources to understand threats and manage risks.


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