Cybersecurity
How To Protect Sensitive Data When You Outsourcing
Companies of any scale have been leveraging this practice, trying to cut development costs and access the rich talent pool. However, despite offering significant benefits, IT outsourcing often causes serious data security concerns.

According to Statista, by the end of 2021, the total value of IT outsourcing services will exceed $413.72 billion compared to $395.57 billion in 2019.
Companies of any scale have been leveraging this practice, trying to cut development costs and access the rich talent pool. However, despite offering significant benefits, IT outsourcing often causes serious data security concerns. According to the statistics, about 65% of companies that have used this solution have faced an information breach.
But how to keep data secure while taking full advantage of outsourcing services? This article has gathered guidelines that will let you protect company data and enjoy collaboration with an outsourcing software development company.
1. Ensure In-House Security
When it comes to outsourcing custom software services, first, make sure that you have a robust in-house data security policy. Here are some important tips to follow:
- Distinguish between sensitive and common data using data classification.
- Use different ways to protect digital content, such as encryption, digital rights management (DRM), tokenization, etc.
- Establish strict access control using passwords, PINs, etc.
- Educate your employees not only to use strong credentials but also to change them regularly.
- Guide your employees on how to handle and protect the company’s sensitive data.
- Build a strict Internet usage policy. Internet access in the company should be restricted to business needs only since personal web usage significantly increases the risks of malicious access to valuable information.
2. Choose the Right Outsourcing Vendor
Following the establishment of an internal security policy, the next step is selecting the outsourcing company to meet your security requirements. When choosing among various vendors, opt for the one that:
- Provides strict security policy.
- Has a good reputation in keeping customers’ sensitive data protected.
- Educates its employees about the importance of sensitive data protection and signs non-disclosure agreements (NDA) with them.
- Considers customer data protection as a core company value.
To understand if vendors meet the following criteria, investigate their data protection measures. It’s reasonable to ask outsourcing companies to define their strategies to store and process valuable information, data and database protection approaches, and practices implemented for vulnerabilities management. What is more, ensure that your potential vendor employs optimal cybersecurity technologies to provide an added level of data protection.
A trustworthy outsourcing company guarantees data security on three basic levels:
- The physical level ensures that a third-party vendor can protect your data from physical actions and events such as natural disasters, fires, thefts, etc.
- The technological level includes various hardware and software tools used to protect data from cyber threats. These solutions encompass email filters, antiviral software, DLP software, etc.
- The administrative level provides a smooth and efficient security policy. It handles PoLP, Internet use, data protection, NDA agreements, and other issues to prevent sensitive data breaches.
3. Use Principle of the Least Privilege (PoLP)
The principle of the least privilege implies that a user, an application, a program, or a process should have only the minimum of the rights necessary to fulfil their functions. Not only does it reduce the risks of a cyberattack, but it also prevents the spread of malware since it’s impossible to elevate privileges to increase access to a company’s critical systems and sensitive data.
PoLP has to be an integral component of the IT outsourcing policy. When granting privileges to your outsourcing vendor, make sure they have only the necessary amount of access to the company’s valuable assets and continuously review the given rights.
4. Conduct Regular Security Audits
Make sure your company conducts regular application, database, and network security monitoring. This way, you will reduce potential security issues, identify and address vulnerabilities as soon as possible. Moreover, it’s a valuable practice to determine whether your outsourcing vendor still maintains data security controls and follows the established outsourcing rules and regulations.
5. Keep Reviewing Your Data Security Measures With Vendors
When cooperating with a third-party vendor, you should never lose control. Even if you have long-term and productive relationships, it’s important to check if your outsourcing partner continues to meet security standards. Here are some aspects to pay attention to:
- Make sure that the vendor deactivates unused user accounts. Otherwise, such accounts can be compromised and used with malicious intentions.
- Find out if your outsourcing partner monitors outbound internet traffic and emails for potential data breaches.
- Ensure the vendor’s user accounts meet necessary security requirements (strong credentials, adequate privileges, etc.)
6. Ensure a Legal Backup
Although the contract doesn’t ensure complete data protection, it can serve as a legal backup. Sign an agreement with the outsourcing vendor, defining essential security requirements. For example, in this document, you can specify that it’s prohibited to transfer your company’s sensitive data to complex media, or that the data transmitted online should be encrypted, etc.
Final Thoughts
Outsourcing has gained widespread popularity, providing companies with a vast number of operational and financial benefits. Although there are some potential risks related to data security, they should not become an obstacle to experience outsourcing.
By building a robust in-house data security policy, selecting the vendor that follows high-security standards as well, and conducting regular privacy and security audits, you will be able to achieve a win-win situation, enjoying the advantages of outsourcing and keeping your sensitive data safe.
Bitcoin
What are Types of Cryptocurrencies: a Complete Guide
What are Types of Cryptocurrencies: a Complete Guide, First cryptocurrency, Coins and tokens, Altcoins, Stablecoins, Governance tokens

Different types of cryptocurrency differ in certain features, areas of application, and efficiency. When choosing the right option for digital assets for investments, it is essential to consider many subtleties since the possibilities of investments and earnings on investments directly depend on this.
The first cryptocurrency was Bitcoin, but in recent years, many new types of digital assets that differ in their features have appeared. For example, you can easily buy WBT and other investments on favorable terms. A comprehensive market assessment will give an idea of the basic concepts and features of the work of decentralized technologies by the established standard norms and requirements for each user.
1. First cryptocurrency
All types of cryptocurrency work on a similar principle but differ significantly. Bitcoin was first launched in 2009. Since then, it has been the most sought-after and profitable cryptocurrency. This is a general-purpose crypto that can be used to pay for various services and goods and used for a wide range of tasks.
Bitcoin can almost wholly replace fiat money due to its simplicity, accessibility, and understandability for most people. In addition to Bitcoin, there are other types of cryptocurrencies: tokens, coins, altcoins, and stablecoins.
2. Coins and tokens
Coins and tokens have a similar value but differ in technical implementation. Among the distinguishing characteristics, attention should be paid to the following:
- Coins are a native medium of exchange used with specific cryptocurrencies developed using Blockchain technology.
- Tokens are coins already created based on their technology, so they have a different underlying implementation technology.
Despite the difference in implementation, these types of cryptocurrencies have similar properties and use cases, so they are actively used to perform various payment transactions.
3. Altcoins
In addition to Bitcoin, there are other types of cryptocurrencies called altcoins. Ethereum is one of the most popular altcoins. It was launched in 2015 but had high popularity and fame on par with the first cryptocurrency.
Among the critical characteristics of Ethereum are the following:
- high flexibility and security of digital assets of different types;
- interaction with various technologies;
- a system of smart contracts, which are characterized by a high level of manageability and security;
- development of applications of various levels using Blockchain technology;
- openness and anonymity of data placement in the system.
Currently, based on Ethereum, many projects, applications, and smart contracts have been developed, which are built based on Blockchain technology. Ethereum also has a cryptocurrency that can be used as a payment instrument.
When wondering what types of cryptocurrency are there, you should pay attention to other altcoins. For example, Solana, Polkadot, and many others are among the most popular projects capable of performing complex transactions.
4. Stablecoins
Many cryptocurrencies are unstable. Their value constantly changes, making them a complex investment tool, bringing significant risks when investing. Stablecoins were created to tie cryptocurrencies to real money to acquire a specific value. By linking to real fiat money, the value of stablecoins is much easier to predict.
As a rule, the value of a coin can change within a few percent, which is not so critical for investors, providing a stable profit. The cryptocurrency market is actively developing, so stablecoins are constantly increasing. At the same time, this digital asset has all the advantages of decentralized technologies and real money.
5. Different types of tokens
Different types of cryptocurrencies are created to finance various operations in specific programs. Therefore, they are referred to as utility tokens. There are such types of similar tokens:
- Governance tokens. Such tokens can be used to manage the company. For example, a particular DeFi project may issue a certain number of such governance tokens, which will help purchase shares of this company in the future. Participants with more similar coins have higher voting power in decision-making.
- Non-fungible tokens. Such tokens are unique and one of a kind. Therefore, regardless of their features and origin, they allow you to get the maximum profit. The NFT market is actively developing and offers many original digital objects that are real works of art.
By understanding how many types of cryptocurrency there are, you can choose the best option for investment. There are a variety of investment options in the crypto market. It is crucial to regularly study all the latest news to understand the peculiarities of the development of the cryptocurrency market.
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