When it comes to IT outsourcing, there’s one burning question that always comes up:
How do you ensure data security?
It’s a valid concern. When IT projects are outsourced, the stakes are incredibly high. A single breach can compromise the integrity of the entire project. It can lead to financial losses, intellectual property theft, and irreparable damage to a company’s reputation.
So, in this article, we’ll explore the unique data security challenges that outsourcing faces. We’ll also offer a detailed guide on best practices, risk management, and the latest tools and technologies to keep your business safe.
Let’s dive in:
Key Data Security Risks in Outsourced IT Projects
IT outsourcing encompasses several services. They range from software development and systems integration to cloud migration, infrastructure management, and customer support.
There are a lot of misconceptions surrounding the process, including its security. While mostly a very safe endeavour, there are some potential data risks you should consider:
- Data breaches – unauthorized access to sensitive data, including customer information, intellectual property, and proprietary code.
- Intellectual property theft – proprietary software and algorithms can be stolen or misused by malicious actors, including rogue employees of the outsourcing vendor.
- Supply chain attacks – cybercriminals increasingly target third-party vendors to gain access to larger companies and use them as gateways.
Don’t worry!
There are several ways to avoid issues:
Best Practices for Managing Data Security in IT Outsourcing
IT outsourcing is at the core of our work here at Expert Allies. As a result, we have a lot of experience dealing with data security.
Here are the main things companies should do to ensure it:
Choosing the Right Outsourcing Partner
Selecting the appropriate outsourcing vendor is key. However, are there a lot of options on the market?
How do you choose the best one?
Well, via a thorough examination of the vendor’s security procedures, credentials, and performance history. Take into account the following:
- Verify that the outsourcing company possesses the necessary security certifications, such as ISO/IEC 27001. This indicates a dedication to information security management.
- Examine past security lapses and events and how they were resolved. If possible, check reviews from previous clients.
- Check to see if the vendor complies with all relevant data protection laws (GDPR, PCI DSS, etc.) particularly in cases where cross-border information transfer is a part of the project.
We’re proud to say that Expert Allies covers all the requirements listed, and then some. So, if you’re on the lookout for outsourcing and staff augmentation partner:
We promise to get back to you by the end of the day.
Establish Robust Security Rules
A reputable vendor can prevent most risks, but you have a role to play, too.
You’ll need to establish:
- Access controls – restrict who can see and edit project-related information by implementing role-based access controls. Only share with the vendor the data that is necessary for the project’s completion.
- Data encryption protocols – everything sent back and forth between the customer and the supplier needs to be encrypted, so that information cannot be read or misused. If possible, research suitable protocols to employ.
- Safe coding procedures – secure coding techniques include buffer overflows, SQL injection, and cross-site scripting (XSS).
Also, check with your outsourcing vendor if any or most team members are working from a distance. If yes, see if they’re following the best practices to mitigate security risks when working remotely.
Regular Security Audits
Most people seriously underestimate the importance of continuous monitoring and regular security audits.
Don’t be like them.
It’s a great idea to schedule frequent meetings. Check up with the vendor about possible issues, how are they employing the security rules, etc. If you’re too busy for that, you can:
- Engage third-party auditors – they will conduct regular security assessments of the vendor’s systems and processes. These audits should focus on compliance with security protocols, vulnerability management, and incident response capabilities.
- Implement continuous monitoring tools – they will help you track all activities related to the IT project. This includes monitoring access logs, data transfers, and any unusual or suspicious activities.
Speaking of security solutions:
Use Advanced Security Software
Various tools can enhance data security in outsourced IT projects. For example:
- Data Loss Prevention (DLP) software – prevents sensitive data from leaving the organization or being accessed by unauthorized parties. It’s particularly useful in monitoring data flows and enforcing security policies. Check out Endpoint DLP, Digital Guardian, and Forcepoint.
- Security Information and Event Management (SIEM) tools – provide real-time analysis of security alerts generated by applications and network hardware. They are crucial for detecting and responding to potential threats. You can use IBM QRadar, LogRhythm, and InsightIDR.
- Endpoint security solutions – ensure that all endpoints involved in the project, including those used by the vendor, are protected with robust endpoint security solutions. Such tools can prevent malware, ransomware, and other threats from compromising project data. Good examples include Symantec Endpoint Protection, Microsoft Defender for Endpoint, and CrowdStrike.
And last but not least:
Craft Your Contract Carefully
Here’s one easy way to ensure compliance:
Embed specific regulatory requirements into the outsourcing agreement. This includes:
- Data processing agreements (DPAs) – outline the responsibilities of both parties regarding data protection, including how information will be processed, stored, and secured.
- Service-level agreements (SLAs) – define acceptable levels of security performance, incident response times, and penalties for non-compliance.
- Cross-border data transfers – ensure your outsourcing partner complies with relevant data transfer regulations, such as using Standard Contractual Clauses (SCCs) for GDPR compliance.
Of course, you should also include penalties should your vendor fail to comply.
Wrap Up
In a world of constant data breaches, we’re rightly paranoid about security. Handing over the reins of a project to an outsourcing partner unsurprisingly feeds into our anxiety.
However, you should let that stop you from testing out this business strategy.
The secret to guaranteeing data security in outsourced IT projects is to use a comprehensive approach. You’ll need to blend strict contracts with strong security procedures, and the newest technology solutions with an all-encompassing security culture.
Most importantly:
Choose your outsourcing partner carefully.
After all, this can make or break your project.
FAQ
How to ensure data security when outsourcing?
To ensure data security when outsourcing, thoroughly screen potential vendors for robust security methods. After you choose one, clearly define contractual duties for data protection, and implement robust monitoring and encryption protocols. You’ll also need to schedule regular audits and continuous vendor communication. To reduce risk, make sure that only necessary data is accessed, and make sure that all applicable requirements are followed.
How do I protect my IP when outsourcing?
To protect your intellectual property when outsourcing, ensure you have a comprehensive contract that clearly defines IP ownership and confidentiality obligations. Here you can learn how to handle confidential information to protect your assets. Additionally, regularly monitor the project and maintain secure communication channels. Most importantly, work with vendors who have a proven track record of safeguarding IP and are compliant with relevant legal standards.
What is outsourcing security?
Outsourcing security means hiring third-party vendors to manage and protect an organization’s data and IT systems from cyber threats. Said partners are tasked with implementing security measures, monitoring for breaches, and ensuring compliance with regulations.
