According to Statista, by the end of 2021, the total value of IT outsourcing services will exceed $413.72 billion compared to $395.57 billion in 2019.
Companies of any scale have been leveraging this practice, trying to cut development costs and access the rich talent pool. However, despite offering significant benefits, IT outsourcing often causes serious data security concerns. According to the statistics, about 65% of companies that have used this solution have faced an information breach.
But how to keep data secure while taking full advantage of outsourcing services? This article has gathered guidelines that will let you protect company data and enjoy collaboration with an outsourcing software development company.
Table of Contents
When it comes to outsourcing custom software services, first, make sure that you have a robust in-house data security policy. Here are some important tips to follow:
Following the establishment of an internal security policy, the next step is selecting the outsourcing company to meet your security requirements. When choosing among various vendors, opt for the one that:
To understand if vendors meet the following criteria, investigate their data protection measures. It’s reasonable to ask outsourcing companies to define their strategies to store and process valuable information, data and database protection approaches, and practices implemented for vulnerabilities management. What is more, ensure that your potential vendor employs optimal cybersecurity technologies to provide an added level of data protection.
A trustworthy outsourcing company guarantees data security on three basic levels:
The principle of the least privilege implies that a user, an application, a program, or a process should have only the minimum of the rights necessary to fulfil their functions. Not only does it reduce the risks of a cyberattack, but it also prevents the spread of malware since it’s impossible to elevate privileges to increase access to a company’s critical systems and sensitive data.
PoLP has to be an integral component of the IT outsourcing policy. When granting privileges to your outsourcing vendor, make sure they have only the necessary amount of access to the company’s valuable assets and continuously review the given rights.
Make sure your company conducts regular application, database, and network security monitoring. This way, you will reduce potential security issues, identify and address vulnerabilities as soon as possible. Moreover, it’s a valuable practice to determine whether your outsourcing vendor still maintains data security controls and follows the established outsourcing rules and regulations.
When cooperating with a third-party vendor, you should never lose control. Even if you have long-term and productive relationships, it’s important to check if your outsourcing partner continues to meet security standards. Here are some aspects to pay attention to:
Although the contract doesn’t ensure complete data protection, it can serve as a legal backup. Sign an agreement with the outsourcing vendor, defining essential security requirements. For example, in this document, you can specify that it’s prohibited to transfer your company’s sensitive data to complex media, or that the data transmitted online should be encrypted, etc.
Outsourcing has gained widespread popularity, providing companies with a vast number of operational and financial benefits. Although there are some potential risks related to data security, they should not become an obstacle to experience outsourcing.
By building a robust in-house data security policy, selecting the vendor that follows high-security standards as well, and conducting regular privacy and security audits, you will be able to achieve a win-win situation, enjoying the advantages of outsourcing and keeping your sensitive data safe.
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