Terrorism Hits Hyderabad: How Will CIOs Weigh The Risks? - InformationWeek
IoT
IoT
IT Leadership // CIO Insights & Innovation
Commentary
8/29/2007
04:10 PM
Bob Evans
Bob Evans
Commentary
50%
50%

Terrorism Hits Hyderabad: How Will CIOs Weigh The Risks?

Two terrorist bombings in the rapidly growing Indian IT city of Hyderabad have reportedly given some investors the jitters. For CIOs who've contracted with Hyderabad outsourcers, how serious is the risk?

Two terrorist bombings in the rapidly growing Indian IT city of Hyderabad have reportedly given some investors the jitters. For CIOs who've contracted with Hyderabad outsourcers, how serious is the risk?While neither terrorist attack specifically targeted IT firms or their operations, a Reuters news story picked up by security news website PlanetData quoted a handful of executives with Hyderabad outsourcing companies who expressed concern about the risk of further bombings.

From the Reuters story: "I can't deny there is a lot of concern," said B. V. R. Mohan Reddy, managing director of Infotech Enterprises Ltd., a mid-sized software services firm. "Incidents of a sporadic nature may not have a major impact but if this becomes frequent, it will be a cause of major, major concern."

An executive of another Hyderabad IT company said the local strategy of referring to the attacks as "stray incidents" might not be enough to allay the fears of investors, according to the story: "Shakti Sagar, managing director of ADP software company, said companies needed to restore investor confidence. 'It will certainly have an impact in terms of damage control,' Sagar said. 'Some investors have expressed concern. We have been telling them these are stray incidents but for someone who has never traveled outside of the U.S., it certainly causes them concern.' "

And Kiran Karnik, the head of the heavyweight IT industry lobbying association NASSCOM, said it's time for public officials in Hyderabad to take decisive action in strengthening security, the Reuters story says: "It is the second such incident in a short period," [Karnik] said. "Although these incidents target the general public, the industry will also have to be aware of any security threat."

CIOs are keenly aware that outsourcing of any kind entails clear risks, including traditional issues such as privacy, quality, deadlines, and various SLAs. In today's new global economy -- which brings with it extensive benefits but also new types of risks typified by these developments in Hyderabad -- CIOs will need to expand the risk-evaluation analyses they undertake before signing on with new or even existing outsourcers. Because, as Infotech's Reddy told Reuters, "The government is acting but if the frequency (of bomb attacks) increases, it will be trouble."

Comment  | 
Print  | 
More Insights
Comments
Threaded  |  Newest First  |  Oldest First
How Enterprises Are Attacking the IT Security Enterprise
How Enterprises Are Attacking the IT Security Enterprise
To learn more about what organizations are doing to tackle attacks and threats we surveyed a group of 300 IT and infosec professionals to find out what their biggest IT security challenges are and what they're doing to defend against today's threats. Download the report to see what they're saying.
Register for InformationWeek Newsletters
White Papers
Current Issue
2017 State of the Cloud Report
As the use of public cloud becomes a given, IT leaders must navigate the transition and advocate for management tools or architectures that allow them to realize the benefits they seek. Download this report to explore the issues and how to best leverage the cloud moving forward.
Video
Slideshows
Twitter Feed
InformationWeek Radio
Archived InformationWeek Radio
Join us for a roundup of the top stories on InformationWeek.com for the week of November 6, 2016. We'll be talking with the InformationWeek.com editors and correspondents who brought you the top stories of the week to get the "story behind the story."
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Flash Poll