What is a common risk associated with outsourcing software development?

Common Risks of Outsourcing Software Development:

One of the most significant risks is the potential for breaches of confidential information.

Outsourcing often involves sharing sensitive company data with third-party vendors, increasing the risk of data misuse or leaks.

Why This Risk is Common:

Outsourcing partners may not have the same level of security measures as the organization.

Compliance issues can arise if vendors do not adhere to industry regulations.

Incorrect Options Analysis:

B. High cost of developers' salaries: Outsourcing is generally cost-effective compared to in-house salaries.

C. Lack of flexibility: Many outsourcing providers are designed to adapt to changes.

D. Short-term contracts: While challenging, these are manageable compared to confidentiality risks.

References and Documents of Information Technology Management:

"Mitigating Outsourcing Risks: Confidentiality and Compliance" (Gartner).

ISO/IEC 27001 Security Standards (Data Protection in Outsourcing).