Data Security & Outsourcing

How To Structure Outsourcing Based On Your Business Needs

Data security remains a critical topic of discussion across all outsourcing models. This is further compounded by the different requirements & standards based on the country where the outsourced staff are located.

When evaluating potential partners for outsourcing, you should feel comfortable asking questions that enable you to understand their data protection and IT security capabilities & competencies.

Let’s review the two most common models of outsourcing used in the mortgage industry: outsourcing companies & direct contractors.

Direct contractors, as the name suggests, are employed directly by a business to handle operational tasks. This direct link means that the contractor & the company are fully responsible for the IT & data security infrastructure related to that role.

The utilization of personal IT assets by contractors introduces potential security vulnerabilities. These external devices create a point of entry that is not fully managed by internal IT security protocols. In the event of a cyberattack, isolating such an asset from the core network might be challenging, and it may not be possible to deactivate the contractor's device remotely.

There are options to mitigate these risks; one being to supply the contractor with an IT asset from your business. However, due to the challenges of shipping valuable items internationally & the associated costs, this is not a solution many have the resources to undertake.

Another approach is to engage an outsourced staff provider, the second most common outsourcing model favored by the mortgage industry.

Some questions arise when assessing the data security capabilities of an outsourced provider: “What do I know about the organization I am entrusting my business and client information to?” “What standards do they meet?” and “How is this measured?”

The chosen provider should be incorporated in the country where the staff are based. It should also be possible to request their specific data security and incident management policy and the preventative measures in place to protect your clients & your business.

Depending on each provider's service offer, they should be able to supply clear evidence of their organizational capability, which can be verified with a certification from a recognized body.

One certification to look for is the ISO 27001 certification. This is the highest international standard for data security. I would encourage anyone reading this article to research how ISO 27001 sets the global standard for Information Security Management Systems (ISMS). Not all providers possess this certification, but those that do offer all their clients the highest level of security.

You can also request full details of the physical location where IT infrastructure is stored and what backups & countermeasures are available in the event of a breach or other unexpected circumstances from any potential provider.

Critically, when asking questions regarding certifications or international standards, these must apply to the overseas entity. It is overseas where the tasks are being completed, and it is also where the risks need to be managed.

For years Outsource Broker Support has supported Mortgage Brokers with offshore staff from our ISO-certified facility. We provide full details to each client on our IT infrastructure, data protection, security protocols & policies.

Our priority is meeting the needs of our clients in all forms of compliance & protection. We are a transparent organization & engage each client on a personalized basis to ensure their needs are fully met. We also extend an invitation to all of our clients to visit our global headquarters located in Manila.

Often, the key when engaging any outsourcing partner is asking questions about what you can’t see, not what you can.

Outsource Broker Support is a market-leading outsourced services provider specializing in the finance sector. We understand the challenges brokers face: how to drive down costs, scale resources & technology to support needs & goals, and deliver consistent, compelling client experiences. Visit obsupport.com.au to learn more!