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Why outsourced cyber defenses create systemic risks

Tuesday, December 23, 2025

Why outsourced cyber defenses create systemic risks

What

Outsourcing critical IT and cybersecurity functions has created significant vulnerabilities, as evidenced by high-profile breaches like SolarWinds and MOVEit. These incidents demonstrate how a single compromised vendor can expose sensitive data across multiple sectors and jurisdictions, leading to systemic risks that threaten global economic security. The reliance on third-party vendors without adequate trust frameworks has magnified operational weaknesses and facilitated cybercrime.

Where

Global, affecting various sectors including government, healthcare, and aviation.

When

Recent incidents include the SolarWinds breach in 2020 and the MOVEit breach in 2023, with ongoing implications for organizations relying on outsourced services.

Key Factors

  • Single points of failure in vendor contracts
  • Lack of embedded trust frameworks in outsourcing agreements
  • Geopolitical risks associated with outsourcing to unstable regions

Takeaways

  • Organizations must reassess their outsourcing strategies to mitigate systemic risks.
  • The interconnected nature of global supply chains means that a breach at one vendor can have widespread repercussions.
  • Stakeholders must demand stronger governance and accountability from third-party vendors.
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