IT companies are increasingly expanding operations across the globe. They are always on the lookout for growing the business and are exploring various options for making a global presence. For maximizing the capabilities, every other company is making efforts to set up their own offshore development center (ODC).
Outsourcing was once considered as a budget-friendly method but has now become a driving force in enhancing the overall productivity of the company. The outsourcing industry has recently reached new heights by touching $88.2 billion as per the Statista report.
Have you assigned your project to an offshore development company? Do you have any idea whether or not your ODC is secure?
Not sure? Don’t worry, this post will guide you through the process!
Here are the Security Measures the Offshore Company Should Take Care Of:
1.Intellectual Property Rights
IPR (Intellectual Property Right) is one of the most critical concerns of the company while choosing offshore outsourcing services. There are different types of IPR. Here are some common ones:
- Trademarks, and
- Trade secrets
From the above four, you can use the three types of IPR (copyright, patent, and trade secrets) to protect your software or technology. Whereas for the protection of names or symbols, you can use Trademarks IPR.
Some countries recognize intellectual property rights more than others. Therefore, choosing the right location to set up an offshore development center (ODC) becomes even more important.
Moreover, it is essential to ensure if your offshore partner company has security measures and whether they are effective. Does the country has rigid laws associated with privacy, and are they enforced? Is there any case where the company has violated any rule or privacy provision in the past? If not, go ahead with that company.
2. Contractual Requirements
While signing up the contract, explicitly mention your requirements. Not just requirements, you should include each and every step involved in the process along with the cost.
Other aspects of contractual requirements will include the time of delivery, mode of payment, detailed specifications & references and the process to mitigate risks/damages.
While opting for the services of another company, you should make your contract legal. And to make your contract legally enforceable, don’t forget to consider the following requirements:
- There must be an offer and acceptance of the same.
- During the acceptance, there must be a consideration (payment).
- Parties signing the contract must be competent.
- The contract must be in the legal form.
3. Approach to Security
Separation of duties, access to control requirements, data protection, audit, logging in, and data privacy definitely needs evaluation. Any change in requirements should be clearly mentioned in the contract. The best way to make sure whether the security expectations are met is to perform the due diligence on the offshore company.
Does your offshore partner has some laws pertaining to privacy?
Drafting the contract in detail leaves no room for interpretation, once the contract goes underway. Any changes that the company is required to follow during the development process should be negotiable. Although assigning your project to an offshore team you will free your company from the development. However, your company holds the complete right to keep an eye on the process.
This includes the initial design phase of the project, development phase, testing phase, until the final deployment. You can take active participation in all the development phases to make sure that your offshore team is living up to the quality standards and technical abilities.
4. Data Backup
Data loss may have serious financial implications. Anyone mistakenly clicking on a virus email may infect and damage the system, and it may further result in losing your data.
“IT pros said they dealt with a variety of issues that cause data loss in the business environment. Most (31%) said that hardware or system failure caused data loss incidents, and 29% lost data due to human error. Another 29 percent mentioned that viruses, malware or ransomware led to data loss.”
A reliable offshore development center will take such statistics into account. Therefore, when you are planning to hire a developer from offshore development company, ask these questions:
Is there any provision for offsite storage of backups?
What type of backup solution do you have – automated or manual?
How quickly can you restore lost data from the backup?
5. Network Security
Networks are always complex by nature. The more nodes on the network for different areas, the more complex it becomes. While outsourcing, the insecurity of a company may increase.
A reliable offshore development partner has the right level of access to the development server. Passwords should be shared only to the required resources, and personal information is shared only after permission from the client.
- The server of your offshore company should be secure from any physical access.
- Your offshore partner must be using all the security features of the server.
- The firewall must be used both on hardware and software.
- Your offshore developers must be using upgraded anti-virus software.
6. Restriction to External Media
This is a huge threat when you are relying on an outsourcing team for your work. There is always a risk that a developer may steal important information with the help of external devices like USB, CDs, or any other external storage device.
Make sure your ODC has a strict security policy that restricts the access of any external media device. This prevents the leakage or the transfer of important and confidential data. Ask them to make provisions, where your offshore company can detect or track the transfer of data.
7. IP Security Concern
When you are taking the help of offshore developers, there is always a possibility of your IP being misused. Therefore, it’s essential to sign a Non-Disclosure Agreement with your offshore company, vetted by an attorney (preferably familiar with the law of that country).
Other Important Measures to Secure IP:
- File system, source control, staging server, web servers, backup server, and email access is given only to relevant people.
- Firewall protection restricts the intruder’s activities.
- Frequent system monitoring ensures prevention.
- Firewalls & additional DMZs restricts the intruder’s activities and mitigate the risk to a large extent.
Keeping all the aforementioned knowledge in mind, your company should make sure that the security measures of the ODC are up to date. You should have a partner who is capable of providing the services you want in a hassle-free manner.
Furthermore, your offshore developers should be well-versed in the related and latest technologies so that your business can amplify. The best ODCs have already adopted the security measures and provide efficient services to businesses while offering client satisfaction. Make sure your project is in good hands!
Author Bio: Nishant Sharma is working as a Digital Marketing Specialist for Your Team in India. Having 4 years of experience working for different business verticals, I am apt in creating marketing strategies that work well for B2B as well as B2C businesses. Besides working, I love traveling, interacting with new people and watching videos that add value to my life.