You're considering offshore IT outsourcing for sensitive data. How do you safeguard against exposure risks?

In my last organization, we were evaluating offshore IT vendors for managing our software compliance project. We chose a vendor with ISO 27001 certification, which signified robust information security management practices. This certification reassured our organization about the vendor’s commitment to safeguarding compliance data

Start by checking their security certifications, such as ISO 27001, and their track record with data protection. In a recent project, we chose a vendor with strong encryption practices and secure data handling policies, which reduced our risk by 40%. Implement strict access controls, regular security audits, and clear data management protocols to ensure sensitive information remains protected throughout the partnership.

Yes, checking their cerfifications is important, not only 27001 but others that are relevant. If possible, conduct your own audit too.

Most important on your checklist are Customer requirements. For Example, when your business includes GDPR and other, similar privacy legal compliance, understanding the complexities of moving customer data to countries other than the home jurisdiction is prerequisite work. The customer has the final say. There is little value in vetting outsourcing companies that will not be approved by your customers. Adding Third Party Data Processors without gaining pre-approval may cause the loss of important customers. Having Data Protection Agreements with your vendors that meet the same contractual requirements you have with your customers are the key. For GDPR, the EU Standard Model Clauses must be accepted by all Data Processors.

At Techno Tackle, we understand how important it is to protect sensitive data when outsourcing IT projects. Not long ago, one of our clients from the healthcare sector approached us with concerns about data privacy. They needed to outsource software development but were worried about exposure risks, especially since they handled patient records. Being ISO 27001 certified, we assured them that we follow strict data security protocols. From encrypted communication to role-based access, we left nothing to chance. By conducting regular audits and training, we ensured their data was fully protected. The result? A successful project with zero security incidents.

A few years ago, a bank decided to outsource its IT asset management to us because we promised strong security, including data encryption. This was a key reason they chose to work with us. However, during a routine security check, it was found that while we were using encryption, our methods were outdated and no longer secure by today’s standards. This left sensitive customer data at risk. We quickly addressed the problem by upgrading our encryption to the latest standards, ensuring all data was well-protected. This not only secured our customer data but also built their trust in us. We learned the importance of regularly updating our encryption methods to protect sensitive information effectively.

To safeguard sensitive data in offshore IT outsourcing, implement strong encryption (AES-256) both in transit and at rest, ensuring data remains unreadable without proper keys. Complement this with strict access controls, limiting data access to authorised personnel only through multi-factor authentication (MFA) and role-based permissions. For example, in outsourcing a healthcare data analytics platform, encryption protects patient records, while access controls ensure only approved staff handle the data, minimising exposure risks.

Very very old question. People have been outsourcing applications that process PII and PHI data for last two decades. Why is Linkedin asking such a question in 2024? Is Linkedin trying to build a LLM or SLM on its own? Accumulating data sets for training their model?

A central KMS should protect the confidentiality, integrity, availability, and source authentication of all encryption keys, algorithms, and metadata. Encryption services should use algorithms appropriate for various types of data protection consistent with up-to-date best practices and standards, e.g cryptographic libraries certified to FIPS 140-2, etc. Their strengths and weaknesses, and the types of data and risks they are suitable for should fit, but responding to new vulnerabilities and regularly adopting more secure algorithms is equally important. Decisions on the appropriate key size and algorithm types, considering factors such as the level of risk to data and cost-benefit analysis should be part of a sound risk-based approach

Implement strict access control measures that limit vendor access to only the necessary systems and data required for their tasks. Use role-based access control (RBAC) to ensure that outsourced teams only have permissions aligned with their responsibilities, and enforce multi-factor authentication (MFA) for all logins to sensitive systems. Additionally, use encryption for both data in transit and at rest, and monitor all access logs regularly to detect any suspicious activity. By securing access tightly, you mitigate the risk of unauthorised access and ensure that outsourcing partners maintain the high standards of data security expected in IT operations.

Enforce comprehensive Non-Disclosure Agreements (NDAs) with the vendor and ensure all employees from the vendor organisation sign data confidentiality agreements. This legal protection outlines clear responsibilities and penalties for data breaches. if you're outsourcing the development of a claims processing system for an insurance company, these legal measures will ensure that personal client data is handled securely, complying with industry regulations such as GDPR or HIPAA.

I recently came across a post that I found impressive. A large enterprise identified unauthorized access to its IT asset data during a routine check. They promptly activated their incident response plan, isolating the affected systems and launching an investigation. Working with cybersecurity experts, they addressed the vulnerabilities and upgraded their security measures. Effective communication with stakeholders and refining their response plan based on what they learned helped manage the situation efficiently. Their swift and effective response not only contained the breach but also reinforced their security protocols, underscoring the critical importance of a solid incident response plan.

Ensure both your internal team and the outsourced vendor have a well-defined, coordinated incident response plan (IRP) that details immediate actions in case of a security breach. Regularly test the IRP by conducting mock data breach simulations, where both teams must quickly detect, report, and respond to a potential cyberattack. This helps identify vulnerabilities in real-time, improves communication channels, and ensures both teams know their roles in containing and mitigating damage. By preparing proactively, you minimise response times and potential risks, ensuring that any threat is swiftly addressed to protect your organisation

In my experience, SIEM systems combined with regular vulnerability assessments are non-negotiables for keeping a proactive stance. It's not just about catching threats when they happen, but also identifying patterns and vulnerabilities before they become an issue. Regular penetration testing adds that extra layer of security. It’s like stress-testing your partner’s systems to ensure any gaps are identified and closed quickly. Remember, it’s not just about setting up these tools but working closely with the offshore partner to ensure they maintain the same level of vigilance and responsiveness.