Outsourcing Risk Research Articles

Las políticas globales y las realidades locales y regionales del acceso abierto: el Plan S y Latinoamérica

This paper examines the tension between current global policies and the local and regional realities of open access that, while differing in their approaches, aim to open scientific knowledge. Specifically, we compare Plan S and cOAlition S, a European born policy with global aspirations, to the traditional dissemination of science of the Latin American publishing system, highlighting the disagreements that challenge regional and local communication principles, sovereignty, and horizons. In that regard, three conflicts are outlined: 1) the publishing framework developed by read and publish agreements has led to a few companies gaining central relevance and the institutionalization of article processing or publishing charges; 2) the risk of outsourcing of key research processes such as peer review, now conceptualized as a service, endangers scientific rigor, its sustainability, and its purpose; 3) the adoption of non-restrictive licenses such as CC BY allows subsequent commercialization of research results, exacerbated by strategies promoting the use of preprints under this license. We conclude that while read and publish agreements consolidated a commercial strategy under new discourses of openness, new guidelines fail to propose viable, feasible, and sustainable strategies for the academic community and, even further, divert of the central aspect of equity pursued by the discourse of Plan S and cOAlition S.

Financial services of banks and outsourcing of functions. Risk specifics and regulation

Subject. This article examines the prospects for outsourcing of financial functions and the problems of banks caused by objective risks and the lack of legal status of outsourcing. Objectives. The article aims to identify the key objective factors of the development and risks of outsourcing based on new digital technologies in the financial sector and assess the feasibility of segregating outsourcing contracts in the legal field to improve regulatory practice. Methods. For the study, we used an interdisciplinary approach, contextual analysis, and comparison. Results. The article formulates a set of key factors that stimulate the development of outsourcing of functions in the financial sector and cause an increase in the importance of risks for the banking business. It presents the author-developed approach to distinguishing the terms Financial Service, Financial Function and Microservice as part of a financial service. The article specifies possible benefits for the bank in the legal definition of an outsourcing transaction. Conclusions and Relevance. Outsourcing of financial functions is an objectively necessary way to strengthen the competitiveness of banks in the digital economy, and some of the presented problems of banks related to outsourcing of functions can be solved by introducing a specific form of outsourcing agreement into the legal field. The material of the article is of practical importance for the risk management of the financial sector, as well as specialists in the legal support of regulation of the financial sector of the economy.

Information security outsourcing strategies in the supply chain considering security externality

Information assets that complement each other capture the information security characteristics of supply chain firms. Supply chain firms usually outsource security services to Managed Security Service Providers (MSSPs) to protect their information. Considering the security externality and information leakage risk in security outsourcing, this article investigates four security management scenarios faced by two supply chain firms. We try to answer whether both firms should outsource security to the same or different MSSPs. We find that no matter under which scenario, as the complementation degree increases, both firms and MSSPs decrease the security quality, and MSSPs offer a contract with lower compensation. We show that information leakage risk and security externality have different effects on the MSSP’s optimal strategy selections. Besides, the MSSP tends to serve both firms when the security externality is positive but prefers serving only one firm when the security externality is negative. Moreover, we find that the strategy that one firm outsources to an MSSP and its partner manages it in-house can be the optimal selection for the social planner but not the MSSP’s optimal strategy. We also extend the model and find that the results are robust to the situations of uncertain loss and asymmetric loss.

Перспективы создания универсального IT-аутсорсера на рынке банковских услуг и проблемы минимизации рисков в корпоративной сфере

In the article, the author refers to the analysis of foreign and Russian regulatory, policy documents, legislative initiatives in order to identify the risks of IT outsourcing in the banking services market. Based on the identification of relevant risks, the concept of a legal model of a universal IT outsourcer in the relevant market is proposed with a detailed analysis of ways to minimize risks in the corporate sphere for such an integrated company.

A tabu search heuristic for the outsourcing risk management problem in multi-echelon supply chains

A tabu search heuristic for the outsourcing risk management problem in multi-echelon supply chains

Evaluation of Operational Knowledge Risks in SMEs – Using a Grey-Dematel Technique

The increasing recognition of the negative impact of knowledge risks on the operations of small and medium-sized enterprises (SMEs) has led to a need for effective methods to evaluate and manage these risks. SMEs often adopt a reactive approach to risk management, which may not be sufficient to address the complex and evolving nature of knowledge risks. This study aims to use the grey-DEMATEL technique to evaluate operational knowledge risks in SMEs, with a focus on identifying the most critical risks and their potential causes and effects. The results revealed 11 operational knowledge risks, and found that outsourcing risks are the most critical among them. Communication risks and improper knowledge application were also found to be significant. Additionally, these risks were successfully categorised into effect risks (including relational risk, espionage, knowledge waste, and continuity risk) and causal risks (including knowledge waste, risks related to knowledge gaps, and the risk of using obsolete or unreliable knowledge). These categories provide a framework for understanding the potential causes and effects of operational knowledge risks and may be useful for designing risk management strategies. To the best of the authors’ knowledge, this is one of the first studies to use the grey-DEMATEL technique to evaluate operational knowledge risks in SMEs.

Agency problems in facility management (FM) outsourcing in the Ghanaian retail sector

Purpose The aim of this study is to examine the agency problems that arise between retail property owners and outsourced facility management (FM) service vendors in Ghana. Design/methodology/approach This study was carried out using telephone and face-to-face interviews. Nine facility managers (n =9) and six retail property owners (n = 6) purposively selected participated in the interviews. The responses from the interviews were analysed using content analysis. To begin with the analysis, the recorded audio for each respondent during the interviews was transcribed to augment what was written during the interviews. The next step was the development of a coding framework where each of the agency problems was assigned unique codes and grouped under themes. Each response was assigned a predefined code based on the agency problems identified in the literature. The research team discussed the consistency of the thematic codes assigned to each of the responses to ensure that each response was captured under the appropriate agency problem theme it best represents. Findings The results showed that agency problems in FM outsourcing in the Ghanaian retail sector are related to disagreement on expenditure associated with maintenance and repairs and improper tenant information sharing and use by FM service providers. Based on the findings, it is recommended that property owners explore the mixed approach to FM to mitigate the risks of complete outsourcing of FM services. It is also recommended that a clear path on how tenant information can be shared be pre-agreed in FM contracts. Originality/value This study provides new literature relating to agency problems in outsourcing and may be the first of its kind for FM in the Ghanaian retail industry. The findings could serve as a starting point for service providers and their principals to find common grounds to understand each other and mitigate the agency problems that could arise and their overall impact on performance.

Agricultural Specialization Threatens Sustainable Mental Health: Implications for Chinese Farmers’ Subjective Well-Being

China’s agriculture is increasingly becoming more specialized. However, specialized production has disrupted traditional farming culture and may threaten sustainable mental health. This study takes Chinese farmers’ subjective happiness and agricultural production outsourcing as the research object, in an attempt to reveal the possible unhappy impacts of Chinese-style agricultural specialization represented by agricultural production outsourcing. First, we construct a theoretical framework of the relationship between agricultural production outsourcing and farmers’ subjective well-being. Secondly, based on more than 3800 household survey data collected by the Chinese Academy of Social Sciences in 2020, we use the classical econometrics and psychological analysis methods such as the Ordered Probit model and the instrumental variable estimation to conduct a rigorous impact assessment. The results show that for every doubling of agricultural outsourcing expenditure, the probability that farmers think they are very happy decreases by about 21%, and the probability that they think they are relatively happy decreases by about 9%. The groups affected by the negative psychological impact mainly include farmers growing rice and corn, farmers in hills and mountains, and farmers with small-scale operations. Further analysis shows that outsourcing risks, the weakening of farmers’ professional autonomy, and family split caused by agricultural outsourcing bring unhappiness, and the increase in income cannot offset the negative psychological effect of outsourcing. The findings of this study may bring inspiration to other countries with agricultural outsourcing markets and programs to improve the national subjective well-being.

Аутсорсинг в цепочках создания стоимости в автомобильной промышленности Китая

Outsourcing plays an important role in the development of the Chinese automotive industry. The transfer of individual business processes to outsourcing allows you to expand the scale of production and ensure its modernization without a significant increase in costs. However, outsourcing not only improves production efficiency but also contributes to the sustainability of the automotive industry. The purpose of this article is to study the impact of outsourcing in various parts of the value chain of the automotive industry on the sustainability of its development. In addition to the traditional approach that defines three components of sustainable development (economic, social, and environmental), in this study we also analyze the technological one, which characterizes the possibilities of using innovative technologies to achieve sustainable development goals. SWOT analysis was used as a research tool. As a result of the study, the opportunities and risks of outsourcing in various parts of the value chain in the automotive industry were identified. The characteristics of environmental factors are given in terms of how they contribute to the development of outsourcing in the automotive industry. It is concluded that outsourcing in the automotive industry contributes not only to the development of the Chinese economy but also to those countries in which outsourcing work is carried out.

Managing Information Technology Outsourcing Risks: A Service Provider-Centric Approach

Managing Information Technology Outsourcing Risks: A Service Provider-Centric Approach

Nexus Between Risk in Outsourced Activities and Operational Performance of Electricity Distribution Company in Nigeria

The emergence of globalization has made outsourcing become one of the most used corporate strategies for providing top‐notch services to various service industry which the electricity distribution sector is not left out. The study aims at examining the outsourced risk and operational performance of electricity distribution company in Nigeria using Benin Electricity Distribution Company (BEDC) as a case study. The study employed survey research design with a sample size of 14 business managers who were selected purposively. The data collected were analyzed using correlation analysis to determine the risk inherent outsourced activities posed are associated with operational performances. The findings of the study shows that the Pearson correlation value r = 0.333 between security & privacy risk and operational performance indicates a positive and low relationship at (P=0.245; P>0.05) significant level, the Pearson correlation value r = 0.311 between operational risk and operational performance indicates a positive and low relationship at (P=0.279; P>0.05) significant level , and the Pearson correlation value r = 0.543 between financial risk and operational performance indicates a positive and moderate at (P=0.045; P<0.05) significant level in the study area. In line with the findings, the study concludes that all risks factors are contributing element to operational performance except for financial risk having a moderate influence on operational performance in the study area and recommends that as much as risk is an important factor in business, the services of outsourced vendors should be cautioned so as not to expose the organization to too much of risk.

Digital Financial Services and Open Banking Innovation: Are Banks Becoming ‘invisible’?

Digitalization in many economic sectors drove the financial system to adapt to new paradigms of technological transformation. Moreover, the extant regulatory framework forced the financial system to reconsider its business models and its relationship with the market. Such reasons generated also in the banking sector a new model of competition within the ecosystem never seen before in this sector. The new ecosystem of banks and financial institutions lacks a common framework that not only synthesizes the development lines of open innovation in the banking sector but also regarding the planification of strategic choices and organization within the new ecosystems. The present study aims to inquire into the strategic positioning of European banks toward their digital transformation strategies, by analysing the decision-making processes that occurred between 2015 and 2022. A qualitative analysis of partnerships and the adoption of Application Programming Interfaces (APIs) development in support of new service models was carried out. Results have relevant policy implications for regulators, linked to the business evolution and the risks of outsourcing, and managerial implications for the followers, specifically on the plan of service integration to diversify and boost their activities in the segment of customer relationship management and care, providing a better user experience.

The relationship between the risks of adopting FinTech in banks and their impact on the performance

Banks give great attention to identifying the risks of adopting FinTech and the extent of its negative impact on their business. This study aims to explore the relationship between the risks of adopting FinTech in banks and their impact on performance, where the balanced scorecard was used to measure performance. This study identifies four risks, which are the most important risks affecting FinTech in banks: systemic risks, operational risks, outsourcing risks, and cyber risks. The data was collected through a questionnaire for 263 respondents at the managerial level of bank branches in Yemen from October to December 2021. Structural equation modeling PLS-SEM and a disjoint two-stage approach were used to approve the model’s constructs. The current study proved the validity of the proposed relationship between the risks and the effect of risk variables on each other, except for the impact of outsourcing risks on cyber risks. Also, the study result is that cyber risks and operational risks of adopting FinTech have a negative impact on banks’ performance. But the outsourcing risks of the adoption of FinTech have a positive impact on banks’ performance the systemic risks do not affect banks’ performance. Therefore, this study is considered one of the rare studies that contribute to analyzing the risks of adopting FinTech in banks and its impact on performance. In addition, it gives a clear picture for decision-makers in banks to identify the dark side of FinTech adoption.

ОБ ИТОГАХ VI ВСЕРОССИЙСКОЙ НАУЧНО-ПРАКТИЧЕСКОЙ КОНФЕРЕНЦИИ "ИНФОРМАЦИОННАЯ БЕЗОПАСНОСТЬ: ВЧЕРА, СЕГОДНЯ, ЗАВТРА"

The article analyzes results of the All-Russian Scientific and Practical Conference held in Moscow at the Russian State University for the Humanities (RGGU), at which more than 20 reports from various scientific and educational organizations were heard. The reports dealt with general issues of information security, software and hardware methods of the information protection; prospects for the development of various areas of the information security were also considered. The topics of the plenary reports included: trends in the development of the information warfare in the context of global informatization, the risks of outsourcing and attracting contractors to the implementation of an information security system, the import-independence of the national ICT infrastructure: an ethical and engineering view, software and algorithmic support for assessing the destructiveness of telegram channels, modeling the evaluation of the effectiveness of the information security control system of open sociotechnical systems, issues of building a reliable enterprise information security systems, etc. The reports in three sections considered: features of ensuring the information security of critical information infrastructure facilities in the field of electric power, analysis of methods of hacking and destruction of a steganographic container in an image file, analysis of the consequences of a breach of personal data security from the standpoint of the intruder’s interests, testing models of analysis and forecasting of the information warfare in society in the simulation environment of Anylogic, etc.

El outsourcing hotelero y sus beneficios y riesgos estratégicos. El Caso de Egipto

The paper analyses outsourcing in the hotel sector in Egypt. It presents the main levels of outsourcing of the main hotel services or activities. Moreover, it also analyses the main benefits and risks perceived by the surveyed managers of this outsourcing strategy. Data have been collected from 114 hotels in two sun and sand resort cities in Egypt (Sharm el Sheikh and Hurgada). The results indicate that the most outsourced activities are entertainment, transport services, information systems and maintenance with the least outsourced activities as reception, room cleaning, laundry and food and beverage. In terms of perceived benefits, the main benefits relate to the focus on core competencies and helping to cover the urgent needs of the hotel; while the main risks of outsourcing relate to the detrimental impact of outsourcing on the hotel’s resources and capabilities and on the hotel’s performance.

The practice of implementing new regulatory requirements for managing outsourcing risk in the banking sector in accordance with Bank of Russia Regulation No. 716-P

The practice of implementing new regulatory requirements for managing outsourcing risk in the banking sector in accordance with Bank of Russia Regulation No. 716-P

აუთსორსინგის განვითარების პერსპექტივები სამედიცინო სფეროში

Outsourcing is an increasingly popular business practice of hiring a party outside a company to perform services and control the rising costs of providing different services. Outsourcing is a practice usually undertaken by companies as a cost-cutting measure. Companies use outsourcing to cut labor costs, including salaries for their personnel, overhead, equipment and technology. Outsourcing is associated to high quality lower cost services. The use of outsourcing is highly effective in healthcare. When properly managed, outsourcing helps improve patient care and maximize staff efficiency. But it is relatively new field, with some specific considerations; for example, security threats can amp up when multiple parties can access sensitive data as patients’ personal information. Outsourcing in the field of healthcare can be used in completely different directions, including the possibility of delegating certain key functions to specialized organizations. The advantage of outsourcing is primarily the economic benefits. At the same time, outsourcing services peripheral to the organization’s primary operations may also enable healthcare administrators and staff to concentrate more efficiently on their organization’s core business. The most significant reasons for outsourcing are to improve customer service, to reduce costs, to enable healthcare organizations to focus on core activities and to increase flexibility to configure resources to meet rapidly changing medical market needs. However, the most significant risks of outsourcing lie in the need to develop new management competencies, capabilities and decision-making processes. this task requires serious analysis and a comprehensive audit of the costs and revenues of a particular organization. Outsourcing laundry services, security, healthcare food service and nutrition, medical tourism accommodation and transportation are the most popular and well-developed in healthcare system, while clinical service outsourcing is relatively new field with specific considerations including high-quality patient care as well as many unintended results, such as, inconsistencies in standards of care.

Very Small Entities (VSEs): Outsourcing Risk to the Supply Chain Is Placing Systems Security Engineering on a Clay Foundation, but Playing Games May Help

ABSTRACTThis article addresses the inherent risk in a supply chain that comprises primarily Very Small Entities (VSE) with little to no security proficiency and limited resources and incentive to prioritize system security. In a globalized economy based on outsourcing and risk‐sharing, most engineering activities occur in the smallest companies, even for large and complex projects. The Future of Systems Engineering initiative (FuSE) appropriately has agility at the core of its Systems Security Engineering (SSE) foundation concepts, and VSEs are by their very nature agile. However, the line between agility and chaos may be thin, and engineers at VSEs must often accept a level of restraint and rigidity beyond their comfort level to achieve functional agility. The primary challenge in VSEs is adding structure without the necessary resources to enforce compliance manually. We propose that VSE focus their initial efforts on FuSE SSE Foundation Concepts that play into their nature and strengths as dynamic human social activity systems. Improvements in security proficiency and stakeholder alignment do not necessarily require much formal structure, and digital tools combined with social strategies can add structure to a resource‐constrained environment. Games can be excellent low‐cost tools to provide structure while minimizing resistance, and Agile Model‐Based Systems Engineering (AMBSE) using digital models can support automated enforcement. Here we use the card game Elevation of Privilege (EoP) as an example. Within the context of a SysML Threat Model integrated into a larger System Model, players naturally treat security requirements as traceable functional requirements. Automated model validation, re‐usable components and patterns enforce a Zero‐Trust architecture, a sufficiently formal trust model to provide evidence‐based assurance, yet achievable for small companies with limited resources.

ADVANTAGES AND RISKS OF ACCOUNTING OUTSOURCING

The purpose of the article is to study the advantages and risks of accounting outsourcing and justify the feasibility of its use as a method of modern accounting at enterprises of Ukraine. Methodology. The theoretical and methodological basis of the study is a systematic approach to the study of practical tools for the implementation and institutional support of the development of accounting outsourcing. In the process of research and systematization of the obtained results, general scientific and special methods wereused: abstract-theoretical; historical; dialectical; induction and deduction, analysis and synthesis; formalization and comparison. Results. One of the ways to solve this complex problem is the transfer of accounting of the enterprise to specialized firms on the terms of application of accounting outsourcing. This form of accounting allows enterprises to focus on the most profitable activities and reduce the cost of maintaining their own accounting structure. According to the results of the study of the legislative framework of Ukraine, literary sources and practical application, a generalized characteristic of the essence of outsourcing has been formed. The analysis of advantages and risks of alternative accounting options is carried out and factors that encourage enterprises to switch to accounting outsourcing are identified. It is established that accounting services on the terms of outsourcing in Ukraine are provided both directly for accounting and financial reporting, and for the performance of works that are not related to the current accounting. The main factors that prompt enterprises to the need to switch to accounting outsourcing are: a high level of loading from the processing of accounting information, a significant amount of overhead costs; frequent changes in legislation; lack of highly qualified accounting staff. Customers of protein outsourcing services are: large companies and banks that are able to ensure transparency of information; foreign companies, banks and their branches accustomed to transparency of information; state organizations with legal information; young enterprises for which outsourcing is necessary at the stage of outsourcing; private entrepreneurs and small businesses. It is confirmed that outsourcing, as a form in the organization of accounting at the enterprise, is an object of increased risk. To minimize their risks, the customer may fix in the contract the level of liability of the parties and the conditions for compensation of possible losses. Practical implications. The development of the outsourcing services market in Ukraine requires a modern accountant not only to know accounting and tax legislation, but also the ability to navigate business processes and own software. Modern achievements of automation of accounting processes and information processing affect the form of record keeping and the organization of accounting, allowing you to choose external accounting entities in order to reduce costs. According to the results of the study, the stages of the sequence of the process of outsourcing the accounting process of the customer enterprise are proposed. Value/originality. Accounting outsourcing, with proper regulatory and high-quality methodological support, has every opportunity to become a promising direction in the organization of accounting work at the enterprise. Well-built and implemented outsourcing services should ensure an increase in labor productivity and efficiency of customer information systems, reduce risks during the modernization of existing systems and the introduction of new ones.

A decision-support tool for policy makers in healthcare supply chains to balance between perceived risk in logistics outsourcing and cost-efficiency

In recent years, governments are increasingly interested in developing public–private partnerships such as outsourcing logistics to service providers to benefit from better performance. A major obstacle to developing such partnerships is the lack of decision-support tools to investigate supply chain and outsourcing decisions, taking into account perceived risk that arises from such partnerships. This paper develops a decision-support tool for policy makers to quantify perceived risk and jointly optimize network design and logistics outsourcing. It is based on a multi-phase approach which quantifies perceived risk as a function of outsourcing decisions using policy makers judgment, solves a multi-objective optimization problem, and constructs efficient frontiers that balance total supply chain cost and perceived risk. The proposed approach is applied to the real case study of the Moroccan supply chain of pharmaceuticals. Several outsourcing strategies are investigated and corresponding efficient frontiers are constructed. Our analysis shows that outsourcing cost-efficiency and the degree of perceived risk have a great impact on the optimal distribution network design and outsourcing strategies.