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~ Financial and legal considerations put security in the shade, says @stake ~

London, February 9th, 2004 - @stake, Inc. (, a digital security consulting firm, today stated that security considerations are being overlooked in the rush to move operations to ‘offshore’ locations such as India, Malaysia and China. Financial benefits and legal issues are the first priorities in any offshore decision. Therefore, security risks are often not identified in time for them to be properly quantified and addressed. @stake cited one recent example where the security staff of an enterprise organisation was only told of an offshore location after it began operations, overlooking the need to evaluate their offshore risk profile and new security requirements.

Samir Kapuria, @stake’s director of strategic solutions, commented, “Offshoring is like the dot com boom: companies are so enamoured by the opportunities that they remain blind to the digital risks involved, transforming security from a core discipline to an afterthought. Moving operations or outsourcing corporate functions to another country can create significant cost-savings. Although companies reap economic benefits with offshoring, they inherit a host of new digital risk. These risks need to be properly identified, quantified and accepted if security is going to be maintained.

Companies planning overseas activities need to assess the digital risks and corporate dependencies associated with offshore initiatives. @stake has identified basic security steps to consider when making an offshore plan, these include: generating and communicating effective security policies for offshore third parties, defining corporate security requirements for offshore application development; conducting vulnerability assessments and penetration tests of both the network infrastructure and applications; and on-site audits to ensure that all environments comply with corporate security standards. @stake recommends that digital risks should be evaluated at the start of any offshoring decision so as to ensure an effective, holistic, security solution. Kapuria continued, “Effective security should not be bolted on after the fact - it needs to be built in as an integral part of the offshoring process. Executives need to ask themselves, ‘What new risks are introduced by the decision to offshore operations?’ The earlier these risks are identified, the easier it is to address them.”


About @stake, Inc.
@stake, Inc., the premier digital security consulting firm, helps corporations secure critical infrastructure and electronic relationships. Delivering world-class consulting and education through its SmartRiskSM methodology and proprietary tools, @stake clients include six of the world’s tops ten financial institutions, four of the world’s top ten independent software companies and seven of the world’s top ten telecommunications carriers. Using the @stake Security BlueprintTM, clients keep security investments in line with business requirements. Headquartered in Cambridge, MA, @stake has offices in Chicago, London, New York, Raleigh, San Francisco, and Seattle. For more information, go to

For further information please contact:
Ghezala Beg
Brodeur Worldwide
Tel: 0207 298 7063

Vicki Cook
Brodeur Worldwide
Tel: 0207 298 7113

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