Since outsourcing increases your efficiency and profitability so now small business is competing with big business in outsourcing their work. But some security problems are there in outsourcing. This problem is mainly for small business house.
Following are top ten security risks in small business:
1. In today's world everything is Right Business Information. This information will keep you in higher position than your rival. BPO is nothing else than sharing information. Don't go with the reputation of the company to whom you are outsourcing.
2. If proper secured software is not used to transfer your data to the outsource service providers then you are placing you company and business at risk.
3. Often the employees of the company you are outsourcing to may not be aware of the security software such as firewalls, anti-virus programs or for server safety that you may wish to utilize and thereby leave your business information vulnerable.
4. Most often the private data are sent to the vendors and it should be handled securly. This is especially true when the information includes names, addresses, social security numbers and credit card information of clients and employees.
5. Small businesses are liable for any misuse of sensitive data provided to offshore vendor. Furthermore issues such as how the data and information will be transferred to and from between the small business and the outsourced team and to what level the outsourced team would have access to the company's information are serious security concerns.
6. Data storage, information sharing policies and training procedures for the outsourced team also need emphasis or they may lead to inadvertent misuse or mishandling of information. A clear understanding of the scope of the outsource provider team's access and working can help sort out these issues.
7. It is vital that the number of people who will handle the business data and information in the outsource provider's office is known to the small business. Issues such as the personal security of the service provider, security against industrial espionage and other such issues need to be adequately addressed. Simple issues such as if employees in the BPO vendor's office can take home information that they have worked on or if sub-contractors will have access to the small business information need to be dealt with before the outsourcing contract is signed
8. Sometimes company you are outsourcing to is not professionally capable of handling the job that they are entrusted with then this can lead to confusion and increased security risk. For instance any certified public accountant would know that the financial information of a business and the manner in which they are processed has dramatic affects on its tax issues and the manner in which its budget is planned and earmarked.
9. Often the legal system where the offshore outsourcing service provider is located may not recognize the security threats and risks involved in outsourcing and may not be able to enforce the outsourcing contract effectively. This is something that small businesses need to focus on before outsourcing.
10. Since there are no standards exist of BPO projects so small businesses should come up with an overall security framework with their outsource provider and they should strictly enforce it in all stages of their outsourcing project.
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