Which IT outsourcing model is the most secure?

When deciding to outsource IT, we think about costs and efficiency. But what about security? Giving access to data and systems to an external company always has its risks. Learn which cooperation model protect your company the most.

Onshoring vs. nearshoring vs. offshoring: does location influence security?

The location of your IT partner is fundamental to the security of your business. As the distance from your company’s headquarters increases, so do the laws, organizational culture, and actual control capabilities.

IT onshoring

Working with a service provider from the same country is widely considered the safest option because both companies operate within the same legal system. Issues such as GDPR, intellectual property protection, and enforcing confidentiality agreements are simple. In addition, close locations simplify security audits and eliminate communication barriers. The drawback is the high cost of cooperation.

Nearshoring services

Nearshoring involves outsourcing tasks to geographically close countries. It often operates within the same legal regime (e.g., within the EU), which facilitates data protection. Cultural differences are minimal, and traveling for meetings or audits is not a problem. This option combines reasonable prices with a high level of security.

Software offshoring

Offshoring involves working with companies from distant parts of the world, which poses the greatest challenges. It is the cheapest option, but differences in legislation and data protection standards can be huge. Furthermore, asserting your rights after an information leak or code theft can be complicated and costly.

Staff augmentation: maximum control, but shared responsibility

In the staff augmentation model, your company hires a specialist who joins your in-house team. The external expert works on your infrastructure, uses your tools, and is governed by your internal security procedures. You have full insight into their activities and can manage access in real time.

Unfortunately, the problem lies in the human factor. Responsibility for system security lies with you, but the risk associated with the behavior of an extra team member is real. Therefore, you need to thoroughly verify candidates and implement robust procedures for granting and removing access.

Project-based outsourcing: securing the final product

Project-based outsourcing is a model in which you outsource the entire project to an IT outsourcing partner. You give them a brief and a budget, and they deliver a ready-made solution.

However, in this model, you have limited insight into the daily processes and security standards used by the provider.

Conclusion

As you can see, IT outsourcing models have different approaches to security. To pick the best model for your business, you need to balance the potential savings with the ability to keep your confidential data intact. For more info about software development outsourcing models, check out scalosoft.