Why Information Security Is Important in Outsourcing

As more and more scaling companies turn to business process outsourcing companies for outsourcing their services, such as customer support, data entry, and accounting, information security has become a critical concern. In outsourcing, sensitive information is shared with third-party providers, which can increase the risk of data breaches and cyber-attacks. This is why it is crucial for growing businesses to understand the importance of information security in outsourcing and take appropriate measures to protect their data while advancing their brands and gaining strategic advantages. 

The Need for Stronger Cybersecurity

The importance of information security in outsourcing is underscored by the increasing threat of cybercrime. According to Forbes, the cost of cybercrime is expected to reach $5 trillion annually by 2025. Furthermore, the average cost of a data breach is $3.86 million, with each stolen record costing businesses $150 on average.

This emphasizes the need for businesses to prioritize cybersecurity and take all necessary measures to protect their data, especially when outsourcing. Another study by Forbes shows that 25% of all data breaches are caused by third-party vendors, highlighting the risks involved in outsourcing and the importance of ensuring that BPO service providers have robust security measures in place.

The Sensitive Elements of Information Security

Information security comprises a variety of components that work together to protect an organization’s digital assets, physical infrastructure, and overall reputation. These elements can be divided into several categories, including:

System and application access protection ensures that only authorized individuals can access sensitive information and resources. This is achieved through the implementation of Secure Access Management (SAM) Level 2, Single Sign-On (SSO) integration, and multi-factor authentication (MFA) mechanisms.

Hardware access protection encompasses password-protected logins and MFA to prevent unauthorized physical access. Hardware data protection involves computer security hardening, disabling USB ports, and controlling printer access. Endpoint virus and malware protection employ advanced machine learning and behavior analytics, as well as remote endpoint containment and intrusion prevention systems, to safeguard devices against threats.

Patch management streamlines operating system, application, and driver updates, ensuring that systems are up-to-date and less vulnerable to exploitation. Email protection mechanisms such as MFA, automated virus scanning, and anti-spam measures help defend against phishing and other email-based attacks.

Network protection is achieved through the use of web services whitelisting and blacklisting, network-based firewalls and intrusion prevention systems, and computer firewalls. Physical protection includes access-controlled areas, CCTV monitoring and recording, and teleworking policies to ensure the security of the physical workspace.

Remote management and security awareness involve employee training in information security, privacy, and remote work security. Remote monitoring software helps maintain the security of remote devices. Mobile device management (MDM) features mandatory screen locks, device encryption, and remote data wiping capabilities, ensuring that corporate data remains secure even on personal devices.

Data security adheres to internationally recognized standards such as ISO 9001:2015 and ISO 27001:2013 and complies with regulations like PCI DSS, GDPR, and HIPAA. Regular internal and external security audits, as well as third-party penetration tests, help identify and address potential vulnerabilities in the organization’s security posture.

Data Protection Laws and Outsourcing

According to Forbes, data protection laws have a significant impact on outsourcing. For instance, the GDPR requires businesses to ensure that their third-party vendors comply with the regulation’s requirements, including conducting data protection impact assessments and maintaining adequate security measures. Non-compliance with data protection laws can result in significant fines and reputational damage.

The CCPA also requires businesses to ensure that their vendors comply with the law’s requirements, including providing consumers with the right to know what personal information is collected and the right to request the deletion of that information. Failure to comply with the CCPA can result in significant penalties, ranging from $2,500 to $7,500 per violation.

Importance of Choosing the Right BPO Company

Choosing the right BPO solutions provider is critical to ensuring information security in outsourcing. Businesses should conduct thorough due diligence before selecting a BPO company in the Philippines or in another competitive country and ensure that the company has a strong information security framework in place. This includes measures such as data encryption, regular security audits, and employee training on information security best practices.

Furthermore, businesses should establish clear communication channels with the BPO company and define the scope and expectations of the outsourcing project. This includes outlining the types of data that will be shared, the frequency of data sharing, and the security measures that will be implemented.

How You Can Secure Your Digital Assets and Optimize Your Processes

In conclusion, information security is crucial in outsourcing, and businesses must take all necessary measures to protect their data. This includes understanding the elements of information security, complying with data protection laws and regulations, and selecting the right BPO service provider. By prioritizing information security in outsourcing, businesses can mitigate the risks of data breaches and cyber-attacks, ensuring the integrity, confidentiality, and availability of their data.

Infinit-O partners with the world’s fastest-growing technology, financial, and healthcare services companies that want to scale and advance their brands. Demonstrated by our world-class Net Promoter Score of 71, we deliver the highest quality outsourcing services using our unique data-driven approach – combining powerful technology and high-performance teams within our highly-engaged and agile culture. Our expertise includes CX, engineering, data science & analytics, sales & marketing, and back office services. So contact us to leverage our state-of-the-art information security system for your growing needs.