Outsourcing various aspects of a business is a strategy to save costs
on providing services inhouse such as tax prep, IT, or customer
service (Sanfilippo, 2022). Handing over sensitive information to a
third party is a risk. In order for the outsourced services to succeed
they must have access to confidential and private information. This
may include tax ID or social security numbers of clients and/or
passwords for employees to access customer credit card information.
Before outsourcing, a business needs to do their research on different
outsource companies. They want to ensure that they have security
measures in place to limit personal information being exposed
(Sanfilippo, 2022).
As Pricewaterhouse Cooper partner, Kruizinga said, “You cannot
outsource your responsibility” (2021). Ownership of the risk is always
with the company. The consumers/clients put their trust in the
company, and it is their responsibility to protect their customers’
personal information. Companies must create, implement, and uphold
contracts as well as policies and procedures with the third-party
company to ensure they adhering to regulatory requirements as well
as standards of stakeholders to ensure confidential information is
protected (Kruizinga, 2021).
References
Kruizinga, A. (2021, September 6). Outsourcing Risk Management.
PWC.nl Retrieved December 8, 2022
https://www.pwc.nl/en/topics/blogs/outsourcing-risk-
management.html
Sanfilippo, M. (2022, September 1). The Pros and Cons of Outsourced
Customer Service. Business.com. Retrieved December 8, 2022.
https://www.business.com/articles/outsourced-customer-service/
