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How Safe Is IT Outsourcing?
IT outsourcing can be very safe - you only need to invest in research, project management, digital transformation, and cybersecurity.
Substantial cost reduction, improved customer experience, closing skill gaps with access to a broader talent pool to tap into… The list goes on and on. There are numerous factors for remote software development centers to play a significant role in digital transformation. But how safe is it to outsource overseas? While in-house teams might seem more manageable (if more expensive) to plan and control, IT outsourcing that is both profitable and secure is no rocket science.
Guide to Safe Outsourcing
Research potential partners
To be on the safe side, you need to do your homework first. Eastern Europe is typically considered a safer region for overseas partnerships than the remaining major outsourcing destinations (Asia, Latin America, and Africa).
This is especially the case with EU members such as Bulgaria, Romania, Croatia, Slovenia, Slovakia, and the Czech Republic. Having similar government policies and industry regulations to their western neighbours results in more transparency and common IT compliance. Political and financial stability also brings predictability to the business, and better conditions inevitably affect the product and service quality.
It is true that different time zones elaborate communication with the USA, but when the offshore development center is 7 to 10 hours ahead (as in Eastern Europe), you can actually review the day’s work at the start of your business hours, which can be a huge advantage.
After you have chosen the destination, get to the research and study the region’s big players – look up their ratings and reviews on specialized platforms, such as Clutch, where information is non-biased. You will also need to check the portfolios for projects similar to yours, as related expertise can accelerate the business processes and improve the end results and product quality. And then look for referrals, as their former or recent partners can give feedback on the actual collaboration with the service provider and any potential risks.
Project management is key
Impeccable project management is what ensures smooth sailing throughout the project, so none of your quality and safety requirements can be compromised. That is why all aspects of the cooperation need to be explicitly defined. Budget, volume, schedule, milestones, deliverables – comprehensive Scope of Work documentation is paramount. The same thing applies to technical specifications, so the company CTO’s involvement in their preparation is mandatory.
Planning and communication are instrumental to the project’s success, so make sure everyone is on the same page at all times. Staying in the loop makes it possible to detect errors at an early stage, which will reduce costs and time for correction. Rewriting code towards or even after the project’s completion is never a great idea.
Invest in Digital Transformation
Outsourcing makes digital transformation simpler and less expensive, and without a digital transformation strategy, companies find it hard to adapt, lose their competitive edge and sabotage their own long-term survival. The service providers’ role is to support and guide their partners throughout the entire digital transformation process. A quality vendor needs to be proactive and suggest innovations in accordance with an established innovation concept that bundles the whole innovation process with a structured methodology for incentives.
Digital Transformation equals data transformation and a whole new way data is organized, interpreted, and exploited. A development partner who is adept at data and data science will help you reorganize your data ecosystem – and then you can unlock the full power of AI, ML, and Advanced Analytics. Scalefocus has the necessary data expertise to help our partners extract the best of it.
Cybersecurity is paramount
Shifting to remote work has posed a batch of new challenges – going more digital more quickly means increased potential for cyberattacks. Companies are moving away from on-site data storage and towards cloud-based ecosystems of interconnected applications and need to update their cybersecurity strategies. Information security protection is crucial for all businesses, so service providers need to come up with future-proof solutions.
To protect critical assets, comprehensive strategies and effective cyber security compliance programs must be in place at the very start of a partnership. Potential personal or any sensitive information leakage is reputation damaging and compromised confidential business data can have consequences of apocalyptic proportions. Vulnerable companies risk considerable sanctions and losing customers’ trust and business in the unwanted event of a breach.
That is why remote development centers have no choice but to go beyond the security minimum and utilize modernized platforms where compliance updates can be executed constantly. Observing the IT risk management international standards is merely a foundation to build on. Advanced digital operational resilience testing also needs to be added to the standard functional, end-to-end, and performance testing.
Other security measures
Apart from cyber security, safety measures also need to include several other security components.
Physical security - describes the level of protection and observation the service provider’s office is under 24/7 security guards, surveillance cameras, alarm systems, etc.
Technical security – software and hardware for data protection and cyberattack prevention, including antivirus and data loss prevention software, firewalls, email filters.
Аdministrative security defines non-disclosure agreements (NDAs), policies for internet usage, systems access, information protection, passwords, etc.
Key Takeaways
IT outsourcing seems inevitable when companies are in search of constant digital transformation in order to stay ahead of the competition. Of course, they have to choose wisely and pick service providers that will safeguard all related data and processes and make agility, product quality, and cyber security their prerogative.
Scalefocus is known for its end-to-end software solutions and provides businesses with executive advisory support, vendor assessment, and policy and technical implementation. Our team of experts boasts profound industry knowledge that helps our advisory services meet security project goals in short time frames.
Last but not least, we provide businesses with operational, engineering, and implementation services and support for building and maintaining a 3-TIER SOC.
Contact us, and we will be happy to discuss how we can help your projects stay protected from cyber threats while maintaining your company’s digital transformation.
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