Outsourcing IT data can offer many benefits, such as cost savings, flexibility, and access to specialized skills. However, it also poses significant challenges for data governance, which is the process of ensuring that data is accurate, secure, compliant, and aligned with business objectives. How do you govern outsourced IT data effectively and avoid potential risks? Here are some tips to help you.
The first step to govern outsourced IT data is to establish clear roles and responsibilities for both the outsourcing provider and the client. This includes defining who owns the data, who has access to it, who is responsible for its quality, security, and compliance, and how the data will be transferred, stored, and processed. A well-written contract and a detailed service level agreement (SLA) can help to clarify these aspects and set expectations and standards for both parties.
A tool we have used to assist in establishing a good data governance structure is a RACI matrix where the required data management tasks are detailed and the RACI roles allocated, documented and reviewed on a regular basis.
From my experience in biz dev within the tech sector, especially when bridging borders like with our partners in DACH, Benelux, and the UK, ambiguity in data ownership and access rights can lead to significant setbacks. There was a time when a project was delayed simply because it wasn't clear who had the authority to approve data transfers. A comprehensive contract and SLA aren't just bureaucratic formalities; they serve as the backbone of smooth operations and trust-building. As we expand and explore new business opportunities, we've found that being explicit about these roles from the get-go is a catalyst for seamless collaboration and project success.
The second step to govern outsourced IT data is to implement data quality checks to ensure that the data is accurate, complete, consistent, and relevant. This can be done by using data validation tools, data quality metrics, and data quality audits. The outsourcing provider should follow the client's data quality requirements and report any issues or errors promptly. The client should also monitor the data quality regularly and provide feedback and guidance to the outsourcing provider.
The third step to govern outsourced IT data is to protect data security and privacy, especially when the data is sensitive, confidential, or regulated. This can be done by using encryption, authentication, authorization, and firewall techniques to prevent unauthorized access, modification, or disclosure of the data. The outsourcing provider should comply with the client's data security policies and standards, as well as any relevant laws and regulations. The client should also conduct data security audits and assessments to verify the outsourcing provider's compliance and performance.
The fourth step to govern outsourced IT data is to align data with business goals and strategies. This can be done by using data governance frameworks, such as DAMA-DMBOK or COBIT, to define the data vision, principles, objectives, and value proposition. The outsourcing provider should understand the client's business context and needs and deliver data that supports their decision making and innovation. The client should also communicate their data goals and expectations clearly and regularly with the outsourcing provider.
The fifth step to govern outsourced IT data is to manage data changes and risks effectively. This can be done by using change management processes, such as ITIL or PMBOK, to plan, execute, and monitor data changes, such as migrations, integrations, or transformations. The outsourcing provider should follow the client's change management procedures and protocols and report any incidents or issues timely. The client should also identify and mitigate data risks, such as breaches, losses, or misuses, by using risk management techniques, such as ISO 31000 or COSO.
Outsource providers need to ensure they have rhe ability to accurately revert changes to data structure (and content), be this through configuration management tools, or data backup/restoration tools.
The sixth step to govern outsourced IT data is to evaluate data performance and value periodically. This can be done by using data governance metrics, such as data quality, security, compliance, availability, usability, and business impact. The outsourcing provider should measure and report their data performance and value according to the SLA and the client's requirements and expectations. The client should also review and analyze the data performance and value reports and provide feedback and recognition to the outsourcing provider.
Plan service exit. Sometimes the SLA for the exit from the service is overlooked. A clear agreement and defined responsibilities when you sign the contract help preventing unplanned costs, evolution barriers, and delays when the outsourced service comes to an end.