software outsourcing

A blog related to software development company and offshore software outsourcing

Wednesday, March 08, 2006

Offshore Outsourcing and Data Privacy

In this competitive world companies are feeling lots of pressure regarding their data security and privacy. This threat regarding the safeguard of the data of the company comes into the picture when informations to be sent overseas. Offshore Outsourcing and Data Privacy has been the most important issue for almost all the companies who are actively involved in this way of the business process. It is true that Offshore Development brings lots of advantages and flexibilities to the firms but a minor mistake would also fetch the same amount of the problems and risks to the company. At present almost all the companies are facing competition globally and pressure to save money is also mounting up. This is the main reason why the companies are selecting the way of Offshore Outsourcing for even a small business application.

Sometimes this pressure puts the companies in to the dilemma to go for overseas help or not. Companies today are now utilizing the Offshore Outsourcing services, both onshore and off, to reduce the overall costs, access skilled and talented manpower and operate more efficiently and effectively. But unlike some companies, one wrong move on an Offshore Outsourcing deal could cost the companies millions of dollars. But as the cost pressures to utilize overseas business process builds, companies now face a confused challenge. It is how to defend their sensitive information and data while enabling the worldwide collaboration essential to compete in today's business scenario. The possibilities for problems have only increased with the occurrence of Offshore Development process.

Problems in Offshore Outsourcing

All these happen especially since firms like India's TCS and Wipro are subcontractors to some of the biggest US outsourcers companies which includes CSC, EDS and IBM. Other problems in Offshore Outsourcing is like amplified sensitivity to issues of national security, protection and terrorism have further added concerns, making this a hot-discussed issue for many regulated industries. Generally, Information Technology service providers like IBM disclose to their customers what subcontractors, if any, they intend to utilize on an overseas project. If any Offshore Development firm breaches export regulations as a result of its service provider subcontracting to a supplier in countries like China or India, it is sure that outsourcer or service providers won’t have to pay for anything.

Ultimately, the question for firms will be where to draw the line of the safety. Experts say that you can send services like HR systems, financial and even development or manufacturing systems overseas, but it is always better to keep engineering design systems inside the premises of the company. Services like BPO such as data entry or accounting can also be sent overseas destinations. They also added that there is not any way to shun using real data with Business Process Outsourcing services, and you have also to make it sure that your service providers are as careful about the data of your company as you are.

All these indicate that how much the companies should take care while going for the help of the overseas service providers. These and many more issues are there which should be taken care off in the process of Offshore Outsourcing.