IT outsourcing is becoming a familiar concept for local enterprises, as more enjoy the benefit of cost savings from delegating certain IT operations to third parties. While the benefit of outsourcing is not limited to monetary returns, not many chief information officers see beyond that.

Shipment tracking portal CargoSmart Ltd., however, has a unique perspective in finding the benefit of outsourcing. Instead of aiming to lower its cost, outsourcing is the bread and butter of CargoSmart's business.

The company helps its clients to manage their shipment-cycles, which are handled by multiple carriers. The portal tracks and manages cargo shipments by relying on the sensitive shipment pricing and scheduling data provided by these carriers.

However being a wholly owned subsidiary of one of the carriers, Orient Overseas Container Line Ltd. (OOCL), CargoSmart's survival relies on its neutrality. Since the shipment data provided by other carriers, who are also OOCL's competitors, is sensitive and critical in the carrier business. To ensure its neutrality and gain trust from other carriers, CargoSmart turned to outsourcing as a "buffer zone."

"The main objective [of outsourcing] for CargoSmart is to protect shipment-sensitive data when serving our customers," said CargoSmart Chief Executive Officer (CEO) Steve Siu.