Does Outsourcing Pose a Security Risk for Your Company?

n a recent survey of U.S. senior executives, 91% of respondents were 'somewhat' or 'very concerned' about data theft or misuse in outsourced operations. The survey also states that information security is one of the top three most important factors in selecting an outsourcing partner -- higher in ranking than either business stability or reputation. Furthermore, 85% of executives stated that they may be willing to pay an additional 10% - 15% for extra security.

With security issues being on the forefront of business leaders concerns, how can companies be sure that their outsourcing providers have the necessary safeguards in place?

Richard Yee, Chief Security Officer, API Outsourcing, discusses possible security risks in using a third-party provider in a recent article entitled "Does Outsourcing Pose a Security Risk for Your Company?" The article states key elements that should be included in any security policy based on established industry standards. It also identifies the type of external review used to obtain third-party verification regarding controls of a service organization. If your provider does not have this type of review, it provides steps that can be taken to evaluate the outsourcing provider's security policy.

Ultimately, the responsibility of security falls to the client. It's up to each company to complete the due diligence needed to ensure that their third-party provider meets their rigorous security requirements. Read this article to learn what steps your company can take to evaluate your providers' security policy to ensure that it meets your organization's standards.

About API Outsourcing

API Outsourcing, Inc. (API) is a leading Business Process Outsourcing (BPO) provider of state-of-the-art invoice automation solutions for mid-size to Fortune 1000 companies. API delivers solutions to transform clients' manual paper-dependent accounts payable, freight payment, billing, and document management processes into innovative automated processes. Clients benefit from the significant increase in process efficiency, profitability and financial control. API uses Six Sigma techniques to deliver high quality, consistent service. API's clients include Rayovac, EDS, Randstad North America, Affinity Plus Credit Union, G&K Services, AMN Healthcare, Jacobson Logistics Company and Lee Enterprises. Headquartered in St. Paul, MN, API manages over 280 million transactions annually.