Does Outsourcing Pose a Risk to Data Security?

Reading Time: 3 minutes 35 seconds
Data security has been a major point of concern to potential BPO clients. According to a study published by Sage Journals, the majority of companies are worried about the security of their data. This concern reflects their reluctance to hire outsourcing companies.   In fact, the global outsourcing industry is a $232 billion industry and is expected to grow in the coming years. In the Philippines alone, there are about 700 outsourcing companies. While the number of BPO companies worldwide is unaccounted for. With those staggering numbers in mind, without prior research and interactions with BPOs, companies looking to outsource may likely come across BPO companies lacking experience, infrastructure, and expertise. Wherein, increasing the risk of their data getting mishandled, lost, or stolen. That said, in a heavily saturated industry, there will always be a few who will not meet the standard.    However, the issue of data security is not isolated to outsourcing companies. In this day and age, all organizations from the biggest companies to the smallest ones are vulnerable to data breaches, hacking, theft, or loss.    The truth of the matter is that outsourcing companies have always been careful when working with data. One prime example is Clark Staff, our company doesn’t compromise when it comes to data security, confidentiality, and privacy. This includes layers of security that ensure their clients’ confidence in their services, such as:   
  • Firewalls/VPN (Virtual Private Network) for inbound and outbound security.
  • All systems do not have external storage devices.
  • All systems and e-mails are password protected.
  • Cabinets are fire-proof and use an offsite storage facility to store documents.
  • Using premium anti-virus software implemented at both server and client level.
  • Only bonafide employees are allowed access into our buildings through a badge access system. Also, armed security on a 24x7x365 days basis.
  • Surveillance cameras.
  • Mandatory non-disclosure agreement for its employees (NDA).
  • PCI compliant workspace for clients requiring an additional level of security for dealing with sensitive data. 
In addition, continuous advancement in technology is a promising development for outsourcing companies to move away from this misconception. Emerging technologies and strategies such as artificial intelligence, behavioral analytics, embedded hardware authentication, blockchain security, and the zero-trust model help reduce cybersecurity risks. Moreover, outsourcing companies are proactive in embracing new technologies more so than their counterparts from other industries. 

The Wrap Up

In conclusion, data security is a game of cat and mouse. Whereas, cybersecurity technologies continue to improve; they may be circumvented by advancements in hacking techniques and lax management by irresponsible companies. On the other hand, the system in place should always be dynamic and never static!

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