Offshore development can provide companies access to high quality technology talent at lower costs. But it also creates potential security and data privacy risks that must be addressed. When partnering with an offshore development agency, rigorous governance and controls are necessary to protect sensitive data and code.
Perform Risk Assessments
Conduct an objective risk analysis of the contemplated offshore engagement, weighing cost savings against security and compliance exposures. Consider risks around data protection, intellectual property, regulatory standards, foreign surveillance laws, and cyber threats. Update assessments regularly as needs evolve.
Vet Providers Thoroughly
Do in-depth due diligence across offshore vendors under consideration. Examine security protocols, policies, compliance audits, and past breaches. Require evidence of adequate cybersecurity infrastructure, access controls, encryption, and staff screening. Visit facilities when possible. Partner only with providers who can demonstrate maturity in safeguarding sensitive client data.
Establish Robust Security Standards
Document detailed security expectations and requirements for offshore partners. Specify approved technology, tools, and platforms. Set policies for authentication, authorization, remote access, device management, and data handling. Perform security reviews at each stage of the SDLC. Conduct vulnerability testing and source code analysis before releases.
Limit Data and Access
Follow the principle of least privilege with offshore teams. Only provide access to the data, code, systems, and IP strictly required for assigned tasks. Mask, sanitize or anonymize data where feasible. Disable external access capabilities. Segregate client data and code from other clients. Restrict direct database and infrastructure access.
Implement Access Controls
Put strict identity and access management controls in place. Enforce multi-factor authentication for offshore team members. Establish approval processes for access requests and periodic entitlement reviews. Remove system access immediately for inactive users. Monitor and log activity to enable auditing and traceability. Use VPNs with forced tunnels to limit external exposure.
Maintain Data Sovereignty
Stipulate that client data stays within defined geographic boundaries at all times. Never permit offshore transfer or storage of raw client data sets. Localize data ingestion, processing and storage. Use containerization to isolate data within country while enabling offshore application access. Meet relevant in-country regulatory and data residency mandates.
Data Encryption
Mandate use of proven encryption methods for data in transit and at rest. Encrypt backups, configuration files, code repositories, databases and data lakes. Manage keys independently of offshore partners. Utilize approved cryptography standards. Establish reliable key management processes, policies and access controls.
Formalize Contracts with Providers
Execute comprehensive security contract terms to bind offshore vendors. Include non-disclosure clauses, breach notification and liability stipulations, right-to-audit provisions, and data ownership rules. Require compliance with relevant regulations like GDPR or HIPAA. Address disaster recovery expectations. Outline remediation and termination conditions.
Conduct Ongoing Audits
Verify offshore provider security controls through frequent remote and onsite audits. Hire reputable third parties to conduct independent assessments if needed. Review logs, policies, patch levels, and configurations. Interview staff on security practices. Perform penetration tests. Confirm providers adhere to contractual security commitments long after engagements begin.
Provide Security Training
Educate offshore teams extensively on security protocols and compliance obligations. Clearly convey penalties for policy violations. Train offshore staff on secure code practices, proper use of decrypted data, device hygiene, social engineering threats, and incident response expectations. Ensure everyone understands their role in protecting client data and IP.
Control Code and IP
Retain ownership of source code and prohibit unauthorized sharing. Disallow code check-ins to offshore partner repositories. Limit offshore team access to sections of code required for assigned tasks. Control specification documents under change management to prevent IP leakage. Scrutinize use of open source components within deliverables.
Prepare Incident Response Plans
Have response protocols ready in the event of an offshore breach. Designate contacts and escalation procedures on both sides. Clarify roles and expectations around forensic analysis, legal obligations, public messaging, liability claims and damages. Practice crisis scenario response to test preparedness.
Offshore engagements offer tremendous advantages, but also require diligence around data security and privacy. Following these leading practices will help protect your most sensitive information and intellectual property when partnering with external vendors globally.
