Staff retention
Allan Pomerantz describes in his May 13 column Human Fallout and the Security Impact of the Sub Prime Crisis how staff cutbacks lead to disgruntled employees, frequently called out by security professionals as likely perpetrators of insider incidents. Of particular concern is those staff with privileged access, particularly system and security administrators. Allan also mentions that reductions in security staff often results in reduced coverage and greater vulnerability.
I point out in my book that organizations need to retain a complement of staff in business, operations, technology and security for overseeing outsourced or downsized functions and against the eventuality that outsourced or reduced activities might be insourced, transferred to another provider, or expanded at some future date. Cutting back or discouraging key staff so that they leave can hinder future attempts at bringing functions back inside the organization and makes doing so much more costly, even to the extent of eliminating any advantages.
Exit (extrication) strategy
The retention of key staff is but one of many considerations when developing an exit strategy from an outsourcing relationship. There are many other factors to include when negotiating the ending of an outsourcing arrangement and either discontinuing the function or moving it inhouse or to another service provider. And it is important to clearly state these factors and how they will be handled when the customer company is in the driver’s seat, namely, before the deal is signed.
Some of the considerations are:
- Transfer of key staff, systems, processes and facilities
- How to handle systems and facilities that are the property of the outsourcer
- The terms and conditions under which notice of termination is given, including any related payments
- Assistance provided by the outsourcer in effecting a range of potential transitions
Regular reviews
Situations and circumstances change over time. What was once a really good deal may no longer be such. Costs, technologies, business requirements, and market conditions all change. So one must be regularly, if not constantly, appraising significant outsourcing relationships against the possibility that it may be desirable to change to other outsourcers or bring activities inhouse. Reviews should be both periodic (say annually) and triggered as when there is a material change, such as in the cost of labor, transportation, telecommunications, etc.
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