Security strategies you can apply when working with IT outsourcing services

March 06, 2024

Tags: Staff Augmentation

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The modern business world is immersed in a digital era where information technology plays a fundamental role in the development and growth of organizations. However, for many businesses, maintaining an in-house IT department can be costly and impractical. This is where IT outsourcing comes into play, an increasingly common practice that allows companies to outsource certain technology functions to specialized providers.


While IT outsourcing can provide numerous benefits, such as reduced costs, access to specialized talent, and increased flexibility, it also poses significant data security challenges. Trust and protection are two crucial aspects when it comes to trusting third parties to handle sensitive company information.


Therefore, it is imperative to implement robust security strategies to ensure data protection while working with IT outsourcing services. We present some key strategies that can help achieve this goal.


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How to maintain security when working with an IT outsourcing service provider

1. Comprehensive supplier evaluation

Before committing to an IT outsourcing service provider, it is essential to conduct a thorough evaluation of their track record, reputation, and security measures. This includes reviewing your information security policies, security certifications, regulatory compliance, and references from previous clients.


“The first step is to select an IT outsourcing provider that has a proven track record of providing high-quality, secure services. You should check their credentials, certifications, references, and reviews to verify their experience and reputation. You should also look for a provider that has experience in your industry and understands your specific security requirements and regulations”, they explained in a LinkedIn article.

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2. Clear definition of roles and responsibilities

Establishing clear roles and responsibilities between the company and the IT outsourcing provider is essential to ensure effective security collaboration. This includes defining who is responsible for what aspects of data security, what measures will be implemented, and how security breaches will be managed.


3. Solid contracts with the IT outsourcing provider

It is crucial to draft detailed contracts that specifically address security issues, including clauses on confidentiality with the IT outsourcing company, data protection, security measures, liability in the event of security incidents, and contract termination procedures.


“To properly address security in an outsourcing contract, a review team must be established to analyze each business process that will be affected by the proposed outsourcing. This review should consider the various risks that could affect each business process and provide a channel to raise issues with senior decision makers”, they highlighted in a Network World article.


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4. Regular monitoring and audit

Establish a regular monitoring and auditing process with the IT outsourcing team to oversee the service provider's activities and ensure ongoing compliance with agreed security standards. This may include external security audits, regulatory compliance reviews, and periodic risk assessments.


5. Data encryption

Implement robust encryption measures to protect sensitive data shared with the service provider during transfer and storage. Encryption helps protect sensitive information even if it is intercepted by unauthorized third parties.


6. Take out cyber insurance

“Another global trend is the use of insurance to protect companies against the impacts of financial cyberattacks. Like Europe, the United States has been evolving in this regard for a long time. According to research by GlobalData, taking the year 2020 as an example, the sale of this type of insurance reached 7 billion dollars worldwide. The investment is expected to exceed $20 billion by 2025”, they noted in a Forbes article.


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7. Rapid response to incidents

Establish a detailed incident response plan that defines the steps to take in the event of a security breach or cyber incident. This will ensure a quick and effective response to minimize the impact of any security breach and protect company data.


Working with IT outsourcing services can offer numerous benefits to businesses, but it also presents significant challenges in terms of data security. By implementing strong security strategies and following best practices, organizations can mitigate the risks associated with IT outsourcing and ensure the protection of their most critical information.


Security should be a primary consideration at all stages of collaboration with external IT service providers to ensure the integrity, confidentiality and availability of business data.


Do you need IT outsourcing services that guarantee the security of your data? At Rootstack, we have +14 years of experience supporting companies in their digital transformation. Contact us.


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