Technology Update: Outsourcing involving Shared Computing Services for APRA regulated institutions (including Cloud services)

On the 6^th July 2015, Australian Prudential Regulation Authority (APRA) released an Information Paper in relation to Outsourcing. It noted that in recent years there has been a significant change in the way that technology is being employed with shared computing services (SCS) being increasingly utilised by a range of business entities.

The trend of sharing information with a large cross-section of entities through SCS, such as data centre facilities, has necessitated the need for a greater degree of caution and supervisory interest to be exercised. While such services offer a range of benefits, such as economies of scale, they also bring a range of associated risks which must be effectively considered and managed.