Outsourcing is very common now, mainly in the Information technology domain. As this helps firms concentrate on their core business. Apart from this, off-shore outsourcing offers a low-cost means of labor which helps the organization to curtail costs and be competitive. Data security is the main focus for most companies that depend on outsourced services. Over the years there has been a rapid increase in data theft causing a massive loss to organizations especially the small ones. Therefore cyber security is a genuine issue in the IT department.
The complexity of communications and information technology has grown and this is why corporations are being exposed to data risks. Recently companies are not confident to outsource essential business processes, company manager dread of not being able to control data security. Organizations use wireless technology, remote access and also share data via social media. With wide distribution of network and with using more tools, there are more security risks. If not managed wisely, your company becomes more vulnerable. For instance, recently a multinational bank in America, JPMorgan Chase & Co witnessed cyber attack that exposed all the private details of the account holders, a huge data breach. The bank did fail to perform a basic data security evaluation.
Now even the senior level executives are worried due to too many malicious attacks on firms. According to a survey of about 160 US senior executives from different industries discovered that about 91% of respondents were more or less concerned or extremely worried about data misuse or theft while outsourcing. Information security is one of the most crucial factors in choosing an outsourcing agency apart from business stability, financial strength and reputation. Majority respondents say so and they are willing to pay out 10%-15% more for enhanced security. According to the research nearly half the respondents are doubtful of the security offered by the outsourcing service providers. About 30% feel security claims cannot be verified and approx 20% feel there is no credibility.
Data security and outsourcing is now an oxymoron. Whether its in-house or off-shore data, protecting is a very big concern and the main problem is unethical employee behaviors. The most essential security components are fundamental employee training and background checks. The news is that BPOs all over India are opting for a paperless place of work to enhance security and a lot of steps are being taken to keep client data safe from improper access. A latest study by CIO magazine and PWC discovered that inspite of the alleged lag in data security procedures, Indian companies are working hand to improve the situation. These organizations are outspending different nations on data security almost by 30%. Western organizations are constantly updating the privacy laws and security. A study has reported that 1 out of 5 organizations are non-compliant with different state security violation notification, it’s a worldwide problem. UK and USA companies that indulge in international outsourcing are taking initiatives to conform to certain laws. The proposals include strict process of vendor selection, better data security processes, recognizing and sharing of finest security practices, constant auditing, hiring legal and security teams to educate employees of vendors, training, security agreements and confidentiality before awarding project, sharing data when right and dedicated network facilities. Securing data transfer is as essential as storing data and securing.
“Ransomware” an infectious program was positioned on secure network on 2016 which has the capability of locking users unless they make the payment. This way then grew up to be a 75 billion industry. This is a clear example that proves that digital security risk assessment is a primary aspect of online business and global security. Apart form huge losses, organizations whose data is misused bear litigation expenses due to cases filed by customers, stakeholders and the rest who are affected. Reputed outsourcing service providers are aware of cyber threats and they have remedial actions for data recovery handy. They have backups, thus can restore and have other measures like access control, encryption, detection systems, software that prevents data loss etc.
Shaping the right solution for your company depends on a few factors including the number of data servers required to observe, what is the level of traffic that flows over the network ad what kid of output your expect the system to deliver. Once you have the monitoring program ready, it can be modified as you gain more knowledge about the data usage procedure. There is definitely a way to save outsourcing expenses and have right amount of data security but then it demands a new way of perceiving data security. Data security issues are the cause of inadequate management and negligence, be careful while choosing your outsourcing vendor. Every employee inside the organization must understand the responsibility of the data they work with and what are the security measures they need to maintain.