When you work with an outsourcing company, it is essential to be extremely specific with your requirements to get the desired output. Likewise, many pointers need to be taken care of before you get carried away with the outsourcing benefits.
Let’s have a quick look at the FAQs on Offshore Development and IT process Outsourcing.
What is ‘Offshore Outsourcing’?
Offshore Outsourcing is employing a third party located in a different country to perform your business tasks, which are currently being operated from your source country. Offshore outsourcing gives you a platform to expand your business globally. Businesses usually go offshore when they see the potential of their project scaling up in a particular nation. It majorly benefits you in terms of time and cost, followed by many other gains. Furthermore, the employment cost reduces as the outsourcing provider manages all the employee settlements.
Why Should I Outsource My IT Operations?
Operational cost holds a major portion of business expenses. IT operations usually require bigger apportionment of resources. Cutting down on operational costs will have a direct impact on profitability. Outsourcing IT operations improves the efficiency of the business by reducing and controlling the cost.
Do I Lose Control over the Process When I Work with an Offshore Team for My Business Processes?
When you are loaded with so many outsourcing benefits, you have to be prepared for some of its shortcomings as well. When you get into an offshore agreement, you are giving the management rights of your company to a third party, but the control will be with the business itself. When you have a firm agreement with the vendor, the process will drive the business. Also, the goals will be driven with the same perseverance as your company. You can fix this by getting firm agreements from the company before finalizing the commercials.
How to Handle Confidentiality and IP with the Offshore Team?
Protecting the Intellectual rights of a company is an important concern in offshore outsourcing. To avoid any seepage of data, you should place a strong security policy and a proper NDA (Non-Disclosure Agreement) in place with the vendor. Besides, you should ensure technical safeguards installed by the outsourcing company is much better than the ones installed at your place.
You Can Follow These Measures at Outsourcing to Maintain Confidentiality and IP:
- Block the data transfer modes for employees who don’t need to have this resource to perform their operations as it is the most common technique used to steal confidential information.
- Encrypt all incoming and outgoing data.
- Secure data with complex passwords.
Infrastructure & Security Issues
Using outsourced development services surely has a list of benefits buy at the same time; it introduces various levels of risks in the form of security threats. Each outsourced application should undergo a risk valuation. The risk factors involved in this process include operational risk, financial risk, confidential and IP information disclosure, and other regulatory compliance desecrations.
Ensure not to expose sensitive data to the offshore team as this can lead the business into trouble. Also, the employees should be trained on how to handle sensitive data. Encourage the use of application layer firewalls to ensure complete security of data. Employ modern technology to control data flow.