The rapid and convenient changes in the software development industry ask you to follow the new trends to keep yourself competitive in the industry. Software outsourcing is more than an option. Nowadays, it has become a necessity for businesses and startups. 

However, software development outsourcing comes with some potential data security and privacy risks. While you outsource projects, make sure to protect the customers’ records. Any organization must maintain the confidence of its customers besides meeting the set legal requirements. 

Here, we will discuss the most important steps in protecting your information during collaboration with third-party developers as well as the major risks that you have to face and methods of addressing them.

Potential Risks in Software Outsourcing

Data breaches: Such include but are not limited to the following; Disclosure of information to people who have no right to access it.

Intellectual property theft: With other party developers various levels of access may be granted and this exposes the owner of the building to loss through theft.

Non-compliance with regulations: Purchasing from vendors at other times may pose a challenge in following privacy laws such as GDPR, HIPAA, or CCPA.

Weak security practices: Outsourcing vendors do not have proper cybersecurity measures hence posing a significant risk to your data.

Practices to Avoid Potential Threats in Outsourcing

Select a Trustworthy Vendor

The first way to ensure the optimum security of data is to select an appropriate outsourcing partner. Look for vendors with:

• The experience of developing unhackable programs.
• Certifications in information security management.
• Experience and knowledge of cybersecurity.

Go for Legal Contracts

Before starting any project, it’s essential to establish clear legal agreements that outline:

• Data protection requirements: Check up on the vendor to confirm that it is in compliance with the law as per its industry such as the GDPR or the HIPAA.
• Confidentiality clauses: Use non-disclosure agreements (NDAs) to protect inventions and other information which are sensitive.
• Data ownership: Specify who has the ownership of the gathered data as well as the developed software.

Role-Based Access Control

Restriction of those in the vendor’s team who get access to the sensitive information is also important. Role-Based Access Control (RBAC) ensures that:

• Some data is only revealed to specifically recommended people or individuals.
• Application developers are provided limited access only to the basic resources needed to do the task.
• It can also be swiftly modified to suit the changes in the project as it is an administrative control.

Data Encryption

To protect your data from breach, you must follow the data encryption practices to keep your information secure. Here are the ways to encrypt your data at rest and in transit.

• At rest: Data encryption should be used on data to be stored in the server, database, as well as in the hard disk.
• In transit: Ensure the data confidentiality as it transfers between your business and outsourcing vendor, and within the vendor’s environment.

Observe the Vendor Activities and Perform Audits

After ensuring all the security measures, you still be vigilant about some other things. Monitory the vendor activities and conduct audits of the work being done by the outsourced company.

Mitigating the Risks: What You Should Do

During the outsourcing process, risks surely come your way. Dealing and mitigating potential risks demands you be well-planned. Here are some smart ways to tackle risks and protect your data:

• Outsourcing should have a high level of security, so you should investigate the security standards of the outsourcing vendor carefully.
• This should be accompanied by a Bill of matters that demonstrates high interactivity with stakeholders and draft clear contracts that contain security, privacy, and liability clauses.
• Encryption should be optimized, meaning that your data should be very safe whether it is stored in a database or as it is being transmitted from one system to another.
• Conduct periodic assessments and reviews of the vendor’s security procedures.
• Make sure that your in-house team is trained to work securely with the teams of the outsourced partner.

Conclusion

The concept of outsourcing software development has a vast advantage, but then again, a vehicle for disservice when it comes to data security and or data privacy. When choosing a vendor, implementing security measures, and being compliant with the law you can minimize risks connected with outsourcing.

As I mentioned before, data protection is not just an issue of technology, but people, relationships, and effort.