Answer 1 As you evaluate your choices and decisions in outsourcing different components of your operations, you will need

to consider the advantages of outsourcing. When done for the right reasons, outsourcing will actually help your company grow and save money. There are other advantages of outsourcing that go beyond money. Here are the top seven advantages of outsourcing. 1. Focus On Core Activities In rapid growth periods, the back-office operations of a company will expand also. This expansion may start to consume resources (human and financial) at the expense of the core activities that have made your company successful. Outsourcing those activities will allow refocusing on those business activities that are important without sacrificing quality or service in the back-office.

Example: A company lands a large contract that will significantly increase the volume of purchasing in a very short period of time; Outsource purchasing.

2. Cost And Efficiency Savings Back-office functions that are complicated in nature, but the size of your company is preventing you from performing it at a consistent and reasonable cost, is another advantage of outsourcing.

Example: A small doctors office that wants to accept a variety of insurance plans. One part-time person could not keep up with all the different providers and rules. Outsource to a firm specializing in medical billing.

3. Reduced Overhead Overhead costs of performing a particular back-office function are extremely high. Consider outsourcing those functions which can be moved easily.

Example: Growth has resulted in an increased need for office space. The current location is very expensive and there is no room to expand. Outsource some simple

operations in order to reduce the need for office space. For example, outbound telemarketing or data entry.

4. Operational Control Operations whose costs are running out of control must be considered for outsourcing. Departments that may have evolved over time into uncontrolled and poorly managed areas are prime motivators for outsourcing. In addition, an outsourcing company can bring better management skills to your company than what would otherwise be available.

Example: An information technology department that has too many projects, not enough people and a budget that far exceeds their contribution to the organization. A contracted outsourcing agreement will force management to prioritize their requests and bring control back to that area.

5. Staffing Flexibility Outsourcing will allow operations that have seasonal or cyclical demands to bring in additional resources when you need them and release them when youre done.

Example: An accounting department that is short-handed during tax season and auditing periods. Outsourcing these functions can provide the additional resources for a fixed period of time at a consistent cost.

6. Continuity & Risk Management Periods of high employee turnover will add uncertainty and inconsistency to the operations. Outsourcing will provided a level of continuity to the company while reducing the risk that a substandard level of operation would bring to the company.

Example: The human resource manager is on an extended medical leave and the two administrative assistants leave for new jobs in a very short period of time. Outsourcing

the human resource function would reduce the risk and allow the company to keep operating.

7. Develop Internal Staff A large project needs to be undertaken that requires skills that your staff does not possess. On-site outsourcing of the project will bring people with the skills you need into your company. Your people can work alongside of them to acquire the new skill set.

Example: A company needs to embark on a replacement/upgrade project on a variety of custom built equipment. Your engineers do not have the skills required to design new and upgraded equipment. Outsourcing this project and requiring the outsourced engineers to work on-site will allow your engineers to acquire a new skill set.

As you evaluate your outsourcing choices, keep in mind that there are advantages to outsourcing and disadvantages of outsourcing. Look at each one of the outsourcing disadvantages listed below and decide what impact that item would have on your business. If the outsourcing disadvantages outweigh the advantages of outsourcing, then you should avoid outsourcing those operations. 1. Loss Of Managerial Control

Whether you sign a contract to have another company perform the function of an entire department or single task, you are turning the management and control of that function over to another company. True, you will have a contract, but the managerial control will belong to another company. Your outsourcing company will not be driven by the same standards and mission that drives your company. They will be driven to make a profit from the services that they are providing to you and other businesses like yours. 2. Hidden Costs You will sign a contract with the outsourcing company that will cover the details of the service that they will be providing. Any thing not covered in the contract will be the basis for you to pay additional charges. Additionally, you will experience legal fees to retain a lawyer to review the contacts you will sign. Remember, this is the outsourcing

company's business. They have done this before and they are the ones that write the contract. Therefore, you will be at a disadvantage when negotiations start. 3. Threat to Security and Confidentiality The life-blood of any business is the information that keeps it running. If you have payroll, medical records or any other confidential information that will be transmitted to the outsourcing company, there is a risk that the confidentiality may be compromised. If the outsourced function involves sharing proprietary company data or knowledge (e.g. product drawings, formulas, etc.), this must be taken into account. Evaluate the outsourcing company carefully to make sure your data is protected and the contract has a penalty clause if an incident occurs. 4. Quality Problems The outsourcing company will be motivated by profit. Since the contract will fix the price, the only way for them to increase profit will be to decrease expenses. As long as they meet the conditions of the contract, you will pay. In addition, you will lose the ability to rapidly respond to changes in the business environment. The contract will be very specific and you will pay extra for changes. 5. Tied to the Financial Well-Being of Another Company Since you will be turning over part of the operations of your business to another company, you will now be tied to the financial well-being of that company. It wouldn't be the first time that an outsourcing company could go bankrupt and leave you holding-thebag. 6. Bad Publicity and Ill-Will The word "outsourcing" brings to mind different things to different people. If you live in a community that has an outsourcing company and they employ your friends and neighbors, outsourcing is good. If your friends and neighbors lost their jobs because they were shipped across the state, across the country or across the world, outsourcing will bring bad publicity. If you outsource part of your operations, morale may suffer in the remaining work force. Answer 2 Flash drives present a significant security challenge for large organizations. Their small size and ease of use allows unsupervised visitors or employees to store and smuggle out confidential data with little chance of detection. Both corporate and public computers are vulnerable to attackers connecting a flash drive to a free USB port and using malicious software such as keyboard loggers or packet sniffers.

For computers set up to be bootable from a USB drive it is possible to use a flash drive containing a bootable portable operating system to access the files of a computer even if the computer is password protected. The password can then be changed; or it may be possible to crack the password with a password cracking program, and gain full control over the computer. Encrypting files provides considerable protection against this type of attack. USB flash drives may also be used deliberately or unwittingly to transfer malware and autorun worms onto a network. Some organizations forbid the use of flash drives, and some computers are configured to disable the mounting of USB mass storage devices by users other than administrators; others use third-party software to control USB usage. The use of software allows the administrator to not only provide a USB lock but also control the use of CD-RW, SD cards and other memory devices. This enables companies with policies forbidding the use of USB flash drives in the workplace to enforce these policies. In a lower-tech security solution, some organizations disconnect USB ports inside the computer or fill the USB sockets with epoxy. http://www.securelist.com/en/analysis/204791995/Internal_IT_threats_in_Russia_in_20 07_2008_summary_and_forecast http://www.ameinfo.com/55474.html http://www.qualys.com/research/top10/ http://www.witiger.com/ecommerce/InternalRisksAndThreats.htm http://www.cio.com/article/120101/Securing_the_Endpoints_The_10_Most_Comm on_Internal_Security_Threats

http://www.itsecurity.com/features/the-top-5-internal-security-threats-041207/

Answer 3 A Service Level Agreement (SLA) is a part of a service contract which presents requirements and expectations of client and end-users. It is a negotiated agreement between two parties where one is the service provider and the other is the recipient. It is an essential component of the legal contract between recipient and the provider. SLA is a document that describes the minimum performance criteria a provider promises to meet while delivering a service. It includes the remedial action and any penalties that

will take effect if the providers performance falls below the promised standard. It may also involve financial penalties and the right to terminate if SLAs are consistently missed The SLA has several benefits as follows: The Customer will have a clearly defined, and mutually agreed, understanding of the type and levels of service to be provided and know what are the customer paying for. This will provide a strong basis for a sound working relationship between the two parties, within clear guidelines and operational procedures, to the mutual benefit of all. Regular reporting: key features of this reporting will include comparisons of actual performance with target service levels and analysis over time. Single point of contact: the Customer will have a single point of contact for all incidents regardless of their nature. Identify and define user needs Provides the framework easy to understand Simplify the complex issues Reduce areas of conflict Encourage dialog in the event of disputes Elimination of unrealistic expectations http://www.itilfoundations.com/processes/service-level-management/servicelevel-agreement/