How do you keep your data safe when outsourcing or offshoring?
Outsourcing or offshoring can help you reduce costs, access talent, and improve efficiency, but it also comes with some risks, especially for your data security. How do you ensure that your sensitive information is protected when you work with vendors from different countries and cultures? Here are some tips to help you keep your data safe when outsourcing or offshoring.
Not all vendors are created equal when it comes to data security. Some may have more experience, certifications, and compliance standards than others. Some may also have more exposure to cyberattacks, data breaches, or legal disputes. Before you sign a contract, do your due diligence and research the vendor's reputation, track record, and policies. Ask for references, testimonials, and case studies. Check their data security certifications, such as ISO 27001, SOC 2, or PCI DSS. And make sure they have adequate insurance and liability coverage in case of data loss or damage.
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The vendor selection process needs to also consider an exit strategy - cloud disruption is prevalent meaning as the client's business needs to evolve, a right to exit and choose a competitive or more secure alternative should be at the forefront. This means there are questions to be considered; can I move my data and what are the implications or risks if I decide to exit?
Once you have selected your vendors, you need to clearly communicate your data security expectations and requirements. This includes defining the types, formats, and locations of data that you will share with them, as well as the access levels, permissions, and encryption methods that they will use. You also need to specify the data retention and deletion policies, as well as the backup and recovery procedures. You should document all these details in a data security agreement (DSA) that both parties sign and adhere to.
Even if you have a strong DSA in place, you still need to monitor and audit your vendors regularly to ensure that they are following the data security standards and protocols. You can use various tools and methods to do this, such as dashboards, reports, logs, alerts, audits, and inspections. You should also establish a clear escalation process and a crisis management plan in case of any data security incidents or issues. You should review and update your DSA periodically to reflect any changes in the data security landscape or your business needs.
One of the most common causes of data security breaches is human error or negligence. That's why you need to educate and train your staff and vendors on the best practices and policies for data security. You should provide them with regular updates, reminders, and feedback on their data security performance. You should also test their knowledge and skills with quizzes, simulations, and drills. And you should reward them for their compliance and improvement.
Another way to keep your data safe when outsourcing or offshoring is to use secure tools and platforms for data storage, transfer, and processing. You should avoid using unsecured or public networks, devices, or applications that may expose your data to hackers, malware, or theft. You should also use encryption, authentication, and authorization techniques to protect your data in transit and at rest. And you should use cloud-based or hosted solutions that offer high levels of data security and availability.
Outsourcing or offshoring can bring many benefits to your business, but it also comes with some risks, especially for your data security. You need to balance the pros and cons of outsourcing or offshoring and decide how much data you are willing to share and what level of risk you are comfortable with. You should also consider the legal, regulatory, and cultural implications of outsourcing or offshoring and how they may affect your data security. And you should always have a contingency plan in case of any data security problems or disruptions.