Outsourcing Security - Why it is a bad idea.

November 21st, 2008
  • I would like to know why it is a BAD idea to outsource security for a firm with 5000 employees? We currently have a highly trained security staff in place. We have firewalls, internal, external network and host based IDS systems, strong security policies and procedures. Additionally, I would like specific examples of security outsourcing catastrophes that other firms may have experienced.


  • Hello and thank you for this question. Outsourcing, whether it be long-term or short-term has core cause and affect symptoms that currently aren't being remedied. It has both pros and cons and depending on how you’ve outsourced your security, it can turn out to be good or bad. There is a great article posted on Network Magazine site and it very well discusses this issue of outsourcing. Outsourcing Security - Is turning over the keys the best way to secure your enterprise? http://www.networkmagazine.com/article/NMG20000426S0026 It is nothing new for a company to buy goods or services from other companies. It is neither rational nor reasonable for a company to do absolutely everything in-house. The question is therefore what a company should do in-house and what others can do better. When a company changes tack and decides that jobs that have previously been done in-house are to be done by a contractor, we call it outsourcing. Even if outsourcing is by no means new, there will be consequences each time a decision is made to outsource, consequences which can be both positive and negative for the company's employees. http://www.union-network.org/Ibits.nsf/5751d24322e603308025646c003b28b8/9e0b613362344979c125667a0033d54d?OpenDocument Bruce Schneier of Counterpane Internet Security, Inc., wrote about outsourcing security. Here is that article. http://www.computer.org/computer/sp/articles/sch/ Classic Outsourcing Blunders http://www.darwinmag.com/read/080101/blunders.html Outsourcing looms for core security. According to this article, outsourcing can be good or bad. It all depends on how you have your agreement done with the outsourcing company. It has given some major questions that should be asked while looking for an outsourcing company. Questions related to experience, SLA’s, services, infrastructure should be investigated to come up with the best company. Read more on this. http://www.networknews.co.uk/Analysis/1129412 Shutdown of Pilot Network Services is a classic example of how outsourcing your security can put a company right on to the steps of disaster. On April 25, 2001, Pilot Network Services went out of business, abandoning 200 customers that relied on them for something rather important: security. Check out more details about how it happened, its impact on customers and how they dealt with this trauma. http://www.cio.com/archive/080101/exposed.html A similar example on the same grounds is of Salinas Network Services, who were the largest firewall management company. They also disappeared. 11 Questions to Help You Select the Best Service & Support Provider. Their questions include some major issues like How consistent is the expertise level, what third-party reviews have been done, and what monitoring can you perform and so on. http://www.networkcomputing.com/1308/1308f2.html 2002: Year of the bad outsourcing deal – Read this article by Andy McCue. According to the analyst company Gartner, 2002 and 2003 will see record numbers of outsourcing deals that go bad. http://www.networknews.co.uk/News/1132982 Outsourcing can offer definite advantages - but only if you do it right. Outsourcing is fraught with danger for the unwary executive or corporate counsel. There are pros and cons to outsourcing: Pros: - improved service and performance, - better management control, - improved business focus and many others Cons: - nickel-and-dime syndrome ("I have to charge you extra for this, and this and that"), - contract termination problems, - loss of in-house expertise and more So, what is the best way to find out whether outsourcing is good for you or not. Here is a 20-step program created by WSR Consulting Group, LLC to help you in this. http://www.wsrcg.com/outsourc.htm Outsourcing Security Management. The need for outsourcing is explained here. They have covered many aspects in the discussion and have also given many links to dig more on this. http://rr.sans.org/policy/outsourcing.php A totally different view is given over here. According to this article, the demand for third-party security services will exceed $17.2 billion by the end of 2004. http://www.computerworld.com/securitytopics/security/story/0,10801,57980,00.html Bruce Schneier says that "On the one hand, the promises of outsourced security seem so attractive: the potential to significantly increase your network's security without hiring half a dozen people or spending a fortune is impossible to ignore. On the other hand, there are the stories of managed security companies going out of business, and bad experiences with outsourcing other areas of IT. It's no wonder that paralysis is the most common reaction to the whole thing." He says very clearly that don’t outsource your security management. This is the best and safe way to have any sort of bad experience with outsourcing. [pdf] http://www.counterpane.com/outsourcing.pdf There is a similar discussion regarding "Should enterprises outsource security to a third party?" is posted on this page ( http://www.internetweek.com/columns01/point081301.htm ). As quoted, some argue it may not be wise to relinquish control of security to a third party. But, this has been done for years in securing brick-and- mortar businesses. The same principles hold true for Internet security. Enterprises should look for a reputable security partner. However, another point says that "Leaving security decisions to IT staff or to technology-centric security outsourcers is ineffective and inefficient. A company must take a security posture that puts business requirements first and evaluates all security measures against those requirements. That's why security overall belongs in-house." Companies are outsourcing IT security to cut costs of around-the-clock surveillance. But, some doubt the risk is worth the savings. http://www.informationweek.com/story/IWK20010713S0009 Outsourced Security On The Rise http://www.internetwk.com/story/INW20000303S0005 The collapse of once-promising companies such as Pilot Network Services Inc. and Salinas Group sounds like the rumblings of a shakeout beginning in an emerging market. Use caution when choosing a managed security vendor. http://www.informationweek.com/story/IWK20010713S0006 Further links: Tips For Successful Security Outsourcing http://www.esecurityplanet.com/trends/article/0%2C%2C10751_1331451%2C00.html Outsourcing security a good plan, but be careful out there http://search390.techtarget.com/tip/1,289483,sid10_gci769748,00.html The realities of outsourcing http://www.nwfusion.com/columnists/2002/0114kaplan.html Find out which technologies network executives are happy to outsource and which parts of their network they don't want anyone else to touch. http://www.nwfusion.com/careers/2002/0527man.html Search terms used: In Google: Outsourcing Security: ://www.google.com/search?num=25&hl=en&lr=&ie=UTF-8&oe=utf-8&q=Outsourcing+Security&btnG=Google+Search In Pandia: outsourcing security: http://search.curryguide.com/execute/search/nph-web.cgi?ac=pandia&adbg=ffffff&intprom=s&query=outsourcing+security&where=?=&match=?=n%3An&pp=16&sd= I hope this helped. Feel free to ask for clarification, and if you are satisfied with this answer, then do rate it. Regards, netcrazy


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