Hiring an external organization to perform business functions outside the actual
business can be very beneficial but also can be safety risks when hiring a third
outsider organization. Confidentiality and having access to certain information is
also a risk with outsourcing. a Outsourcing jobs to offshore destinations can sharply
increase data privacy risks and the complexity of managing that risk, several
experts at the Fourth Annual Privacy and Data Security Summit here warned this
week. As a result, companies need to ensure that overseas vendors are
contractually tied to specific conditions regarding how data is transmitted,
accessed, used, stored and shared, they said. Those challenges include regulatory
compliance, data protection and access issues, as well as monitoring and auditing
issues. (Vijiyan, 2004) From a regulatory standpoint outsourcing can security
breaches can be harder to detect and deal with. It’s a company’s job to make sure
their employees are protected and if there is a breach of the security systems it’s
the company’s job to inform the customer immediately. Companies are required to
notify customers of any database breach that may have compromised the
customers' personal data as soon as the breach is discovered. With overseas
vendors, it becomes a lot harder to know whether, and exactly when, a material
breach may have occurred, Purcell said. (Vijiyan, 2004) Companies should not
spare any expense on trying to protect their customers from outside breaches
especially when they are outsourcing the work.
Vijayan, J. (2004, February 20). Offshore outsourcing poses privacy perils.
Computerworld. https://www.computerworld.com/article/2574317/offshore-
outsourcing-poses-privacy-perils.html
