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Business Data Protection: Offshore vs. Outsource

There was a time when you would only need to have a clear idea of the things that you want to do for your business. After that, you can already decide about the next things that you are going to do. As people have started to strategize more about the things that they would need to do to improve their business, there are also more details and key information that are being stored in various computers and gadgets.

There are so many things that would need to be protected such as the following:

  • Customer details
  • Some loyalty schemes
  • Transactions
  • Collected data

These data are considered to be important. There is always a possibility that if hackers would collect these data, they may misuse the data for fraud, phishing scams, and identity theft. Data security is not important only for businesses. It would be important for everyone. People can make use of the right software in order to protect their data more.

Outsource and offshore data protection

There are some similarities with the type of process that outsource and offshore data protection can offer. You may assume that IT outsourcing and offshoring are the same but there are some differences that will help you choose one type over the other. One thing that should be remembered is this: the business will make sure that they are able to come up with a clear goal when creating their project. For example, there may be some requirements that are available initially. If these requirements are not fulfilled, the project may have some difficulty in going through.

Businesses need to make sure that their websites will always be secure so that customers will have no issues in sharing the required information. At the same time, businesses also need to make sure that they will address potential legal issues. There are going to be different data protection requirements that businesses would need to pass so that they can be trusted eventually.

Outsource data protection

Outsource data protection requires you to assign data protection issues and steps to a third−party company. There are different IT outsourcing companies that are available for your various needs. If you are a business owner, you can choose from a wide variety of companies that would offer their data protection services. You can get from a company that also has its headquarters set in your own country.

Offshore data protection

When you say offshore outsourcing data protection, this means that you will get the work done which is protecting your data from different countries. For example, there are some countries wherein the pay for work is going to be cheaper. Companies will be able to get the same amount of skills and knowledge for a lesser price. This can be good for businesses as they will have a higher chance of making a profit from their endeavors.

Advantages and disadvantages of outsourced data protection

Picking the right company that can provide the outsource data protection is one of the steps that you have to think about. Remember that you still need to know if this is the type of data protection that your business needs.


  • You can expect that people hired by the outsourcing companies will have more specialized skills.
  • People are more skilled which can also result in faster work done.
  • Labor flexibility


  • There is a possibility of misaligned interests of the clients and the vendors.
  • Your company may become more reliant on third party companies.
  • You will not have enough in−house knowledge on how you can protect the data that you acquire.

It should be noted that even if you decide to get a third−party company like a nearshore development center, make an effort to acquire knowledge about data security. This will help you to be not too vulnerable against possible attacks. Plus, you do not have to rely too much on the company for the information that you may need.

Advantages and disadvantages of offshore data protection

It is a known fact that labor in other countries is going to be much cheaper as compared to others. For example, if you would get a writer in the United States, you can expect that the writer would need to be paid so much more as compared to a writer who comes from a third−world country.


  • Lower costs
  • Better−skilled people that may be available even in unusual times of the day
  • Higher chances of acquiring talented people that will do jobs fast.


  • Some possible geopolitical risks.
  • Language differences
  • Poor communication, especially if there are language barriers

Best solution

One of the best things that you should remember is this: it is always possible to do outsourcing and offshoring together. For example, you can offshore so that you will have an extension of the team that you already have in your company. These people can have the same skills or even better skills than your in−house employees but the costs would be much lower.

You can try outsourcing if you feel that you need some data security tasks that would need people who have specialized skills. For example, you may need a company that will make proper data recovery. While you may have some employees that can try doing this, you want to be sure that data recovery will be made properly. Outsourcing can be your best option for this as there are some companies that work on data recovery alone. Data recovery is very tricky. The more times that you try to recover data, the harder it will be to acquire the data back.

Another time wherein outsourcing can be ideal is for outsourcing software development. There is a big chance that you would need specialized software for your business. A company that specializes in creating this type of software will be needed.


It is obvious that offshore outsourcing can be what you need to make sure that business data protection will always be up to date. Both types of business data protection types are on the rise. There are various things that businesses are going through right now, especially with the ongoing pandemic that forced companies to find other means to be more efficient. Your company can become more comfortable in outsourcing and offshoring after finding the right company or people to do the needed tasks for you.


Staff Writer at CPO Magazine