Outsourcing and Offshoring: Preventing cyber security threats is a Challenge for the Leadership

Outsourcing and Offshoring are the two solutions, for lot of issues that businesses face because these solutions ensure cheaper human resources, infrastructural conveniences, knowledge and skills and higher growth potential. But at the same time these solutions bring along with them; the apprehensions pertaining to – data protection and security, knowledge and information security; in a nutshell, cyber security. The threats can range from theft, loss or destruction of sensible information and intellectual property, unauthorised access to the network service, infection with malicious code, disclosure of someone’s personal data and identity theft etc. The reasons for such threats can be varied; for example, at offshore locations the cultural and legal environment is less able to protect foreign investors etc. Nonetheless, outsourcing and offshoring are the realities of today’s businesses, so it is essential for the decision makers concerned to do the due diligence in terms of risk assessment that should involve, a thorough analysis of the existing politico legal and cultural environment of the outsourcing partner/offshoring location is concerned. It is more important to think of a mechanism to prevent any threats in such a scenario, rather than treating the very business models of outsourcing and offshoring as potential threats because that would simply mean that we are trying to put the clock behind or reinvent the wheel. The three areas that can be covered to prevent any such cyber threat event are- technological safeguards through building effective encryption mechanism, authorisation schemes, digital signatures, passwords, firewalls etc.; legal, by putting in strong agreements with the other party; and last but not the least, a set of organisational rules, procedures, and having the right kind of people at the right places to ensure effective implementation of the projects. Business is always about risk but it is important for the stake holders to minimise risk by doing the home work properly because risks should not deter one from taking a well thought action.

(This post is from my blog http://www.deepshikhasingh.org, which unfortunately does not exist any more.. Fortunately I had some of the content covered in an ebook which is available on Amazon & iTunes as well.)