Organisations which outsource their IT systems are increasing their potential vulnerability to security breaches causing possible long term damage to their business, according to insurer Ace European Group (Ace).
Ace said it has uncovered a lack of awareness among many European businesses of the increasing risks which outsourcing poses to their networks.
Ace added that it is also aware that there is a degree of uncertainty among many businesses, both as to the level of protection given to their computer systems and the cover provided by their existing insurance policies.
Shaun Cooper, Ace's senior network risk underwriter, said: “Outsourcing presents an additional challenge to the security of IT systems.
“While technology...is part of the solution, technology alone cannot guarantee network security, particularly in an outsourced environment...Businesses must look to alternatives, including transferring the risks to insurers, in order to reduce the impact of technology failure, human error or criminal activity.”
An Economist Intelligence Unit survey in September 2005, sponsored by Ace, revealed that more than half of the European companies polled had suffered significant financial damage as a result of IT system failure, including damage or misuse of systems, by staff or contractors, during the previous 12 months.
