A lot of companies outsource due to increasing complexity and
operating in multiple states or multiple countries. Outsourcing frees
up employees' time so they can spend it on issues related to the
business’s core competency. However, it also creates new risks.
These include a risk of loss of information. a This is because security
breaches at offshore locations can be harder to detect. a Since they are
hard to detect, they are also harder to deal with. a Most states have
laws that state 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.
Even if there were no laws in place, the company still has a
responsibility to protect the privacy of their customers. a The
customers trusted the company with their personal information, and
it is expected that the company would protect the information. a By
outsourcing, the company would not be able to inform their
customers of a breach of data in a timely manner for the customers to
take corrective actions. a This could cause a lot of damage to a large
number of people. a With this, the company would be looked at why
this occurred. Unable to answer the question, they would face
repercussions for the data breach and not the outsourced contractor. a
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Vijayan, J. (2004, February 20). Offshore outsourcing poses privacy
perils. Computerworld. Retrieved December 7, 2022, from
https://www.computerworld.com/article/2574317/offshore-
outsourcing-poses-privacy-perils.html
