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India is renowned as a top outsourcing destination for high-quality, low-cost software development for global companies. To effectively benefit from outsourcing in India, it’s crucial to have a thorough understanding of how to do it securely.

Why is this important? The biggest threat to India’s top dog status in the global IT outsourcing industry are prolonged and fresh doubts over its ability to ensure data security, with data breach incidents in the country way above the global average.

Driven by escalating cyberattacks and insider threats, enterprises around the world are facing increasing pressure to protect their data and reduce the exposure of their organization to these data-related risks.

For many reasons, these risks rise significantly when you outsource a project half-way across the globe. As even established destinations such as India are at risk. In fact, would it surprise you to know that despite all its IT outsourcing benefits, India has the highest data breach rate in the world?

“75% of enterprises in India have reported breaches of sensitive data in the past, while 52% reported a breach during the last 12 months”

-Thales Data Report 2018 India Edition

A Real and Present Threat

The findings detailed above are all the more worrying given that the largest data breach in 2018 occurred in India when government ID data base, Aadhaar, reportedly suffered multiple breaches which compromised the records of all 1.1 billion registered citizens. While 2019 has not started out any better, in January Amazon India was hit by a data breach in which 400,000 of the platform’s sellers in the country had their sensitive information leaked.

Given the costs of a data breach, outsourcing software development to India without the right research, preventative, and protective measures means companies are leaving the security of their sensitive data at risk. In every scenario, the impact of losing key IP such as your source code is far greater than any potential cost savings which may be gained from outsourcing.

Now that we have established the need for vigilance when outsourcing to India, let’s consider some questions you want to be asking or provisions to look out for when selecting an outsourcing partner. This will be the most important decision you make in the outsourcing process.

Selecting the Right Outsourcing Partner

As businesses in India embrace new opportunities and unwanted realities, data breaches have become a perpetual threat, and unfortunately, a common occurrence. As such it is important to ensure that your outsourcing partner has policies and technologies in place to mitigate these risks.

Before selecting an outsourcing partner, consider the following:

• To what extent is my source code and other IPR at risk in India?
• What factors should be considered when selecting the right outsourcing partner?
• How do I ensure my company’s sensitive data will be safeguarded?
• After project completion, how do I make sure my proprietary data stays confidential?

To find out more detailed insights about outsourcing software development to India, security considerations, and how to protect your source code, click here

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