New IT Security: Protecting Your Company Against Outsourcing Supplier Insolvency Authors: Leo T. Crowley, Joshua B. Konvisser, Vipul N. Nishawala, Rick B. Antonoff, Kent P. Woods, Erica Edman Carrig
Conventional wisdom was that bankruptcy was not a major consideration when outsourcing to “blue chip” sourcing suppliers. However, with recent market changes characterized by giant corporations effectively disappearing in a cloud of insolvency over a weekend—and with the proliferation of smaller, less well-capitalized suppliers—the rules of the game have changed.
The challenges to the sourcing marketplace are exacerbated by the reliance of many sourcing suppliers on the financial services industry as a client base. As the number of financial services clients shrinks, the portfolios of sourcing suppliers will shrink as well. While many sourcing suppliers will weather this crisis, some may not.
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