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Understanding Security risks in Offshore Outsourcing

July 5, 2008

Companies must understand that security should be there top most concern in outsourcing the work to offshore locations. This is even more critical in BPO, where the business data is sent to offshore to BPO vendors to work on those data. Following are some general guidelines companies can use in evaluating the security infrastructure of their offshore BPO vendors.

1. When it comes to business process outsourcing it is the business data you are sharing with an offshore outsourcing vendor. Thus if you do not check the credentials of the outsource vendor and its reputation you may be placing valuable business information in the wrong hands.

2. Files are transferred electronically to outsource service providers; you need to use proper technologies like Secure FTP, Encryption, VPN, etc to send your business data over the Internet. Similarly, your offshore vendors should use proper technologies to send you back the finished data through Internet.

3. Often the employees of the outsource vendor may not be aware of the security software such as firewalls, anti-virus programs or for server safety that you may wish to utilize and thereby leave your business information vulnerable. Companies should carefully evaluate the security infrastructure of the offshore vendor’s capabilities (e.g., security to office buildings, secure access to server rooms, etc.) and how they enforce it with their employees in their offices.

4. Often the data that need to be processed by the BPO provider is confidential, and if it is not handled in a secure manner, it may bep considered as an invasion of privacy. This is especially true when the information includes addresses, names, social security numbers etc. Make sure that your BPO vendor follows industry best practices inside their office buildings to safeguard your business data.

5. You are liable for any misuse of sensitive data provided to BPO vendor. Furthermore, concerns such as how the data and information will be transferred to and from between your company and the outsource vendor and to what level the outsourced team would have access to the company’s information are serious security concerns. Here again ask specific questions and understand their security policies and procedures before selecting the BPO vendor.

Offshore Outsource Security

6. Data storage, information sharing policies and training procedures for the outsourced team also need emphasis, or they may lead to inadvertent misuse or mishandling of your business data. A clear understanding of the scope of the outsource provider team’s access and working can help sort out these concerns.

7. It is vital that the number of people who will handle the business data and information in the outsource provider’s office is known to you. Issues such as the personal security of the service provider, security against industrial espionage and other such issues need to be adequately addressed. Simple issues such as if employees in the BPO vendor’s office can take home information that they have worked on or if sub-contractors will have access to the business information need to be dealt with before BPO contract is signed

8. Often the legal system where the offshore outsourcing service provider is located may not recognize the security threats and risks involved in outsourcing and may not be able to enforce the outsourcing contract effectively. This is something that companies require to focus on before choosing the offshore vendor.

9. Though there are no security, privacy, and auditing standards exist that can be followed in BPO projects, businesses should come up with an overall security framework with their outsource provider, and they should strictly enforce it in all stages of their BPO project.

Bottom line, you are responsible for your business data, it is your responsibility to make sure you check your BPO vendor’s security infrastructure, security policies and procedures before making your decision.

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Written by Mani Malarvannan · Filed Under Articles 

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2 Responses to “Understanding Security risks in Offshore Outsourcing”

  1. Growth of Remote Infrastructure Management Outsourcing | Outsource Portfolio on March 29th, 2009 8:08 pm

    [...] Security risks in offshore locations [...]

  2. Remote Infrastructure Management (RIM) Outsourcing « Eureka Outsourcing Solutions on May 5th, 2009 3:01 am

    [...] Security risks in offshore locations [...]

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