Data security – Major Concern in Outsourcing

October 26, 2019
Data security – Major Concern in Outsourcing

[vc_row][vc_column][vc_column_text css_animation=”fadeInUp”]The data security risk is a massive worry in today’s outsourcing arena. Almost all the companies are lining up to outsource their HR functions, let’s have a look at some of the concerns.

With the advent of IT, outsourcing has become a big business trend as this helps firms to concentrate on their core business. Data Security risk is a preeminent concern for most companies that depend on outsourced services. Cyber Security is a significant issue in the IT department of any company. A recent study shows that organizations are not confident enough to outsource essential business processes. In the case of HR outsourcing, data security in payroll processing is indeed a very major concern. In HR outsourcing, issues are broadly categorized into three major categories: Compliance, Contractual, and Operational.

According to a recent study of more than 160 US senior executives from different industries, discovered that 91% of the respondents were concerned about data security risks. To them, information security is one of the most crucial factors in choosing an outsourcing agency. Security is one of the essential elements in selecting an outsourcing agency for business outsourcing. Respondents declared that they were willing to pay 10% – 15% more for enhanced security. To be precise, data security and outsourcing are an oxymoron. Data security in HRMS is a significant concern as far as HR-related outsourcing is concerned.

Protection of data is a big concern, whether it is in-house data or offshore data, and the major problem is the unethical behavior of the employees. The significant components of security are fundamental employee training and background checks. Another study has reported that every one out of five organizations is non-compliant with different state security violation notification, and it is a global problem. Many companies that indulge in international outsourcing are taking initiatives to conform to certain laws.

The proposals include the strict process of vendor selection, better data security processes, recognizing and sharing of finest security processes, constant auditing, hiring legal and security teams to educate employees of vendors, training, security agreements, and confidentiality before awarding the project, sharing data only with right networks. Securing data transfer is just as essential as storing data and securing. Reputed organizations are very much aware of data security risk, and they have remedial actions for data recovery. Safeguarding payroll data is of great importance in the case of HR outsourcing.

Shaping the right solution depends on several data servers, the level of traffic that flows over the network and what kind of output you would expect the system to deliver. HR outsourcing services are exposed to many different types of data risks, and these can be handled by effective remedial measures. A sound monitoring program may be used to gain knowledge about the data usage procedure. It has been observed that data security issues are the cause of inadequate management and negligence, and hence you should be very careful in choosing your outsourcing vendor. Every employee inside the organization must understand the responsibility of the data they work with and what are the security measures they need to maintain.[/vc_column_text][/vc_column][/vc_row]

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