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IT Outsourcing Guide: 7 Compliance Issues Every Business Must Consider

Author: Innotech Vietnam
Date: 31/05/2022

IT Outsourcing has several advantages that will take your business to a new level. It allows you to concentrate on your main business while taking use of IT skills and technology. In addition, IT outsourcing your operations might allow you to grow your firm without having to invest a large amount of money in the beginning. 

While there are various critical factors to consider when IT outsourcing, one of the most important is compliance. Notably when IT outsourcing, you run the danger of increasing your security risks or impacting your company’s ability to comply with industry or government standards without doing your due diligence. 




Prepare for IT Outsourcing 


Before you outsource your IT, think about what data and functionality you’ll hand over to your vendors and what jobs may be outsourced. 


1. Which Tasks To IT Outsourcing? 

The first stage in IT outsourcing is to specify the IT functions you want to outsource, as with any major business transformation. Consider the impact these tasks will have on your company as a whole. Is outsourcing these jobs going to damage your business? 

Furthermore, you must evaluate whether IT outsourcing affects how various departments adhere to regulatory requirements. To put it another way, think about if IT outsourcing operations might put your organization at risk of not being in compliance. It’s important to know if this change will affect your capacity to continue business and how it will affect your financial performance in the long run. 


2. Analyzing and Selecting a Service Provider 

IT outsourcing is a serious business. When entrusting a business function to a third party, make certain that the service provider you choose: 

  • Will be able to perform any outsourced work you need. 
  • Standards for security, reliability and customer service are high. 
  • Complies with relevant laws and regulations 




3. Contracts 

Draft an agreement with your service provider once you have identified functions to outsource, selected a provider, and minimized the risks of outsourcing IT services.. The reason for this is that you are placing your business’s IT assets, apps, and data in their hands. 

It’s critical for you to list out the rules that control how the service provider will supply the IT outsourcing services and how to assure company stability even if something awful happens. Due diligence and compliance assessments, management, and testing contingency plans are all tasks that your in-house workers will have. 

This is also a good moment to lay out the rules of the game. In terms of compliance, who is accountable for what? It’s important to know who is accountable for the security of what data at what time. What norms and regulations guide the use, transmission, storage, and transfer of information? 


4. Understand Your Compliance Requirements 

In certain circumstances, authorities or certification groups provide guidelines on how to IT outsourcing.  

If you outsource your IT work, make sure that all relevant procedures, technologies, and systems are still in place and adhere to any applicable regulations. Some of them are the General Data Protection Regulation (GDPR), HIPAA, or the International Organization for Standardization (ISO). 




After IT Outsourcing, What’s Next? 


After the contracts have been signed and your service provider has started working, you have even more duties to take on. 


5. Ongoing Assessments 

When you sign the deal, you’re not done with IT outsourcing. Your outsourcing services and supplier should be regularly reviewed by a professional staff. This group of people will: 

  • If you’ve defined KPIs for the integrity, security, and availability of your data and IT services, ensure that your service provider and subcontractors are fulfilling those KPIs. 
  • Oversee the service provider’s risk assessments, assurance reports, and internal audits. 
  • Maintain your company’s business stability policies and assure that the service provider takes the necessary safeguards to maintain business sustainability. 
  • Develop exit strategies that detail what occurs once IT outsourcing duties are completed. For example, how the service provider will dispose of the data gathered or stored throughout the contract. 


6. Security And Compliance 

When it comes to maintaining regulatory compliance, security is perhaps your biggest challenge. Even if you are in the IT outsourcing process, you may be compromising your security. Your systems, information, data, and IT assets become susceptible the instant you transmit them or make them available to a third party. This can have a significant influence on the way you deploy security measures since you lose some control over these assets. 

There are steps you may do to improve your IT security while still sticking to regulations. The first step is to determine what kinds of data you need to secure in order to comply with different laws, such as: 

  • Information about a certain people 
  • Financial information 
  • Privileged access to patient records 




Data such as credit card numbers and social security numbers, as well as IP addresses and marital status, are also sensitive information that must be secured in business. You should have a compliance team in place after defining what needs to be secured. What this group will be doing is: 

  • Performing risk analysis, including risk identification, assessment, and analysis, as well as risk tolerance setting. 
  • Putting in place security measures including encryption, firewalls, secure passwords, and vendor risk management. 
  • Constant security threat monitoring and response, as well as detailed documentation. 

Complying with regulations and securing your data should be mutually compatible. Separating the two is a bad idea. In reality, achieving cybersecurity compliance is the first step in ensuring a company’s safety. However, security is more than just completing the standards of an organization or regulator; it goes beyond that. It protects the company’s IT assets against ongoing attacks and threats. 

In addition to avoiding fines and penalties, compliance has other advantages. Having ISO:27001 certification, for example, might suggest to potential clients and users that the IT outsourcing security measures are up to standard. Additionally, adhering to regulations can assist to keep you out of trouble when conducting business, since it requires you to keep track of your activities. 


7. Plans For Exit 

You should have a thorough exit plan in place that oversees the termination of your contract with the IT outsourcing company. In addition, it helps you decide what to do when outsourcing activities are done. 

When it comes to your compliance, there are a number of things that may go bad. It is possible for the IT outsourcing provider to fail at their outsourcing activities, go out of business, or experience an accident that stops them from carrying out their functions. 

If you’re leaving a service provider, your exit plan should include how you’ll regain control of your IT assets and data, as well as what the provider may do with your data and how it will be eliminated. 




Keep In Mind 


When it comes to IT outsourcing, there are many considerations, but one of the most important is compliance. Keep in mind that while you can outsource the work, you cannot outsource the responsibility for compliance.  

You are ultimately responsible for ensuring that your organization complies with all applicable laws and regulations. Because of this, it is essential to do thorough due diligence before outsourcing any regulatory-related services. 

Ensure that your IT outsourcing provider has the resources, expertise, and capacity to satisfy your demands, as well as a commitment to compliance – and your contract should reflect that. When the service provider takes over, your task doesn’t end.  

Compliance must be a primary priority when outsourcing IT activities to ensure that your business’s interests are not damaged. 


With 14+ years of experience, 200+ projects done, and a team full of talented individuals, Innotech Vietnam can be a reliable partner if you are looking for an IT Outsourcing company.    

There is a lot of information about the clients Innotech now serves on our website. We attempt to provide you with the sense of security you need to enjoy enhancing your business with us.    

Contact our team of experts if you have any queries or concerns about outsourcing and we’ll be more than pleased to assist you.    


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We’re here to help and answer any question you might have. We look forward to hearing from you.