Cybersecurity and protecting against cyber attack is one of the afflictions of a connected society. Just as bank robbers of the past years were looking for weaknesses in a bank’s security protocol, cyber hackers are doing the same.
But not all cybersecurity issues are a result of nefarious activities. Some of the cybersecurity issues are amplified when there are multiple entry points into a business’ cyber world. This creates a new challenge for outsourcing.
Businesses are now demanding higher levels of cyber proofing from their providers and are including cyber effectiveness audits in their agreements. Soon, we will see Key Risk Indicators as part of SLA just as we have KPIs.
General Data Protection Regulation (GDPR) was passed by the EU in 2016 and is now being fully implemented. The penalty for non-compliance and violations are extreme. Although this does not directly impact how companies outside of EU manage data, it impacts all global companies and service providers who have operations or affiliation with any EU countries.
GDPR requires an extreme framework for identifying and protecting data. The regulation anticipates businesses to appoint a “Data Protection Officer” (DPO) and grant the DPO a significant amount of responsibility and accountability. As this article suggests, identifying and recruiting a DPO will be a challenge. Since outsourcing relationships depends on providers as well as customers to be compliant with this regulation, the DPO will be expected to be appointed by both entities.
Jag Dalal is IAOP’s Chief Advisor, Thought Leadership. He is a world-renowned authority and coveted speaker on management strategies, technology, and outsourcing. His deep experience as a business executive who contracted for these services as well as his leadership experience in establishing outsourcing practice for some of the world’s largest professional services companies; allow him to bring a unique perspective to consulting. JDalal Associates, LLC specializes in consulting in the field of Information Technology, Change strategies and Business Process outsourcing. His clients range from Fortune 100 companies to small “startup” companies from around the globe.