1. What are the benefits and risks associated with outsourcing?
The primary benefit of outsourcing is saving money. The client can gain maximum productivity with the minimum costs.
Benefits of Outsourcing:
• Outsourcing is a way of risk sharing. Company minimizes risk when they outsource their business to a third party. This works in the same principle, as those diversifying investments in various plans.
• Outsourcing helps in problem solving and the growth of the company. If a business outsources some of their services, the currently employed, experienced employees can focus on the critical issues or core business activities of the company.
• The productivity of the company can increase when skilled employees hired at lower rates, which in turn, make it possible to hire employees in large numbers.
• The quality and speed of the outsourced activities are increased. The client companies can save on taxes by hiring the right kind of outsourcing companies.

Risks of Outsourcing:
The major disadvantage of outsourcing is, once the agreement is signed, it is the responsibility of the supplier to look after the day-to-day business operations. It becomes difficult for a client company to take control over the business to some extent. • The chances of fraud could be the number one risk from the third party. For instant, company secrets leakage may occur, especially in IT companies.
• Outsourcing could result in failure of delivering products before the deadline. It is essential for any business to provide a great costumer service because most of the time, business trust is built on providing great costumer service. Hence, they can possibly loose the client company.
• The productivity of outsourced services is less in the first year of the agreement, since, the cost of transferring knowledge is very expensive.

2. What are the ethical issues associated with outsourcing government applications? Outsourcing has many disadvantages related with government data. Compromising any government related application is never an option. Although outsourcing is an efficient and cost effective way of business, it compromises many government related documents. There might be some ethical issues related with this compromise. When the United States outsource to any other nation, the data compromised could be ethical to another country, but should not apply to the United States. Confidentially, of any company is compromised when outsourcing, that could have bad result in any country. People in the country lose their jobs, they might have to live away from the family.

3. What are the security issues associated with outsourcing government applications? Most of the business use cloud computing to share data and companies confidential documents. Cloud computing is the easiest and convenient way to share information while outsourcing. When we hold the companies’ confidential document in the air any bad person could hack into it despite the security of the networks. Since, they have to compromise the security. Security and confidentially is very important when it comes to any business. It is not compromise at all, especially if it is government related. Risking the government data means risking the whole country and sabotage the trust of any citizen.