Risk In Outsourcing For Small Business- Points To Remember

nly big business but also small business can outsourcematter.
their work which increases the efficiency of work.5. If the company you are outsourcing to is not
Several security issues are linked with outsourcingprofessionally capable of handling the job that they are
whish are especially applicable to small business asentrusted with then this can lead to confusion and
business processes outsource (BPO) management isincreased security risk. For instance any certified public
not efficient or effective. Small businesses must takeaccountant would know that the financial information
security as a key issue during the planning stage itselfof a business and the manner in which they are
to protect their business critical data.processed has dramatic affects on its tax issues and
Following are top ten security risks small businessthe manner in which its budget is planned and
should know:earmarked.
1. It is vital that the number of people who will handle6. Legal system of both the companies country must
the business data and information in the outsourcebe check thoroughly otherwise you may Face problem
provider’s office is known to the small business.with the contract.
Issues such as the personal security of the service7. Since the files are transferred electronically to
provider, security against industrial espionage and otheroutsource service providers so it should be handled
such issues need to be adequately addressed. Simplewith care to get high end security. Software used
issues such as if employees in the BPOmust give high security otherwise you are placing you
vendor’s office can take home information thatcompany and business at risk.
they have worked on or if sub-contractors will have8. Most often the data that needs to be processed by
access to the small business information need to bethe service provider is confidential and if it is not
dealt with before the outsourcing contract is signed.handled in a secure manner it may be considered as
2. Often the employees of the company you arean invasion of privacy. This is especially true when the
outsourcing to may not be aware of the securityinformation includes names, addresses, social security
software and thereby leave your business informationnumbers and credit card information of clients and
vulnerable.employees.
3. Small businesses are liable for any misuse of9. Though there are no security, privacy, and auditing
sensitive data provided to offshore vendor becausestandards exist that can be followed in BPO projects,
most of them can’t afford costly but goodsmall businesses should come up with an overall
quality security software.security framework they require for their project.
4. Collecting information is one which will keep you at10. Emphasis must be given to data storage,
an edge over your rivals and vice versa. Businessinformation sharing policies and training procedures for
process outsourcing is nothing else than sharingthe outsourced team or they may lead to inadvertent
information with your outsourcing partner. Thus onlymisuse or mishandling of information.
credentials and reputation of the company should not