THE MAGAZINE

Security and Outsourcing: Negotiate Early

As a growing number of U.S. companies outsource software creation and data-handling functions to service providers located in other countries, the issue of data protection has gained prominence. One such problem is that 'backdoors' could be inserted in code for later use and that personal financial data could be stolen.

A report by the Center for Strategic and International Studies (CSIS) addresses the first point, noting that "Some intelligence analysts believe that software offers one of the best mechanisms for technical intelligence collection by a range of adversaries." One recommendation: Government and industry should develop a formal process to coordinate risk assessments.

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