Security News > 2022 > February > Spot the irony: India's Reserve Bank says outsourcing and offshoring are risky
The Reserve Bank of India has warned the nation's finance sector that outsourcing information technology jobs could "Expose them to significant financial, operational and reputational risks."
A quick reminder: since the late 1990s, India has championed outsourcing IT services and profited mightily as a result.
Now the RBI thinks that the country's financial services sector needs guidance, so outsourcing doesn't get it into trouble.
"Aspects such as risk management framework for IT outsourcing, managing concentration risk, periodic risk assessment and outsourcing to foreign service providers require suitable regulatory guidelines," the Statement urges.
Whatever the reason, the RBI will therefore soon issue a document titled Reserve Bank of India Directions, 2022.
India's finance sector will also have Reserve Bank of India Directions, 2022 to ponder, as the RBI also feels the time has come to update and consolidate its guidance for "Information Security Governance and Controls, Business Continuity Management and Information Systems Audit."