As companies seek greater ways to find cost savings, the lure of contracting cheap labor overseas continues to grow. Outsourcing overseas is becoming increasingly common in the banking, financial services, retailing, insurance, and telecommunications sectors. But when companies choose to outsource the processing of sensitive personal information, are they losing control of security as well?
Just because a company transfers the performance of a function to a third party, it does not mean that the company can also transfer its legal compliance obligations with respect to the performance of that function.
In fact, despite transferring the function, the business may well remain legally responsible to its customers and suppliers for the successful performance of the function.
Of course, in addition to legal troubles, the public relations fallout for a company who falls prey to a data security breach can be devastating.
Pepper Law Group assists clients in performing the proper due diligence when selecting and contracting with technology or business process outsourcers.
We also advise our clients on what steps a company should take to secure their outsourcing operations abroad and protect customer data.
Read our article here about just how safe outsourcing personal data really is.