Question

As managers of financial operations, we should be familiar with these terms. Choose two of these topics and compare and contrast so that we can learn the differences. Class members joining the conversation later, are there any keen observations that jump out at you?

When we outsource, offshore and place Accounting/Financial IT/IS in the cloud, what are the issues related to ownership and where does the ultimate responsibility rest?

Answer 1

When we outsource, offshore and place Accounting/Financial IT/IS in the cloud, the major issues rise because of the security concern which ultimately gives rise to the ownership issue. According to me the service provider should be chosen on the following parameters in order to avoid security threats:

• Level of encryption provided - 128 or 256 bit SSL
• Auditing by third party for penetration test
• Latest firewall technology
• Layers of backing up of data
• Types of servers for minimal downtime

Since this is the age of technology and internet, it is also the duty of service seekers to be cautious of various type of phishing attacks.

In my opinion, the ownership of safekeeping data lies in the hands of both - service seekers and service providers.