Outsourcing As An IT Security Solution

TowerGroup finds that managed security service providers (MSSPs) can often offer security best practices and maintain the high quality technological and human resources that many financial institutions simply cannot sustain internally.

With a synergistic approach to state-of-the-art security protocols, MSSPs working with financial institutions can establish a powerful and effective framework - rooting leadership for enterprise security programs within the institution while the actual security technology is managed by the MSSP. However for outsourcing to be effective, TowerGroup believes that the service provider and the institution must establish the right contractual expectations as well as a collaborative governance structure.

Managed security services (MSSs) can and should be incorporated into a financial institution's enterprise-wide, integrated risk management and regulatory regimen to maximize operational leverage. A graphic illustrating the ideal roles and responsibilities of each party in an outsourcing arrangement can be viewed and downloaded at: http://www.towergroup.com/research/content/page.jsp?pageId=1522

The TowerGroup report titled, "IT Security: Too Important to Outsource or Too Important Not To?," by Rodney Nelsestuen, senior analyst in the Cross Industry practice at TowerGroup, outlines why financial institutions should investigate outsourcing the IT portions of security.

At TowerGroup, Nelsestuen's research focuses on business and IT strategies, emerging trends, growth strategies and issues germane to the financial services industry. He covers topics such as improving customer experience, innovation, business process management, outsourcing, risk management, and cultivating ethnic and other emerging markets.