Top 6 Best Practices for Technology Sourcing Companies in Protecting Client Data

Top 6 Best Practices for Technology Sourcing Companies in Protecting Client Data

By Published On: April 2, 2024Categories: Business Intelligence, Management Tips

In this digital era, data is not just an invaluable asset for any organization; it is the lifeblood that drives decision-making, innovation, and customer engagement. As such, its protection is paramount, a responsibility that weighs heavily on the shoulders of technology-sourcing companies.

Entrusted with cutting-edge tech solutions and services, these companies stand at the forefront of defending their client’s data against an ever-evolving landscape of cyber threats, including breaches, leaks, and sophisticated cyber-attacks. This task demands advanced technical capabilities and a deep understanding of the various risks and the best strategies to mitigate them, making it a critical aspect of their service offering and value proposition.

1. Implementing Advanced Encryption Techniques

One of the foundational steps in protecting client data is encryption. Technology sourcing companies should employ advanced encryption standards to safeguard data in transit and at rest. This means using protocols like TLS (Transport Layer Security) for data in transit and AES (Advanced Encryption Standard) for data at rest. Such practices ensure that even if data is intercepted, it remains indecipherable and secure.

For instance, an IT sourcing company specializing in cloud-based solutions might implement TLS 1.3 protocols for all data transmitted between client systems and the cloud. This ensures that sensitive data, such as customer details or proprietary information, is securely encrypted during transmission.

Similarly, for data stored on cloud servers, they might use AES-256 encryption, which is robust against brute force attacks, ensuring that stored data remains secure. These measures are particularly crucial when dealing with clients in industries like finance or healthcare, where data sensitivity is paramount.

2. Rigorous Access Control Policies

Access control is critical in preventing unauthorized access to sensitive data. Implement role-based access control (RBAC) systems to ensure that employees can only access the data necessary for their role. Additionally, employing multi-factor authentication (MFA) adds an extra layer of security, making it significantly more challenging for unauthorized users to gain access to sensitive information.

Consider a technology-sourcing company providing IT infrastructure management services. They implement RBAC to define clear employee access levels based on their roles, ensuring that only network engineers can access critical network configurations. At the same time, support staff have limited access tailored to their support tasks.

Furthermore, they introduce biometric authentication as a part of their MFA protocol for accessing client systems, significantly reducing the risk of unauthorized access through stolen credentials. Such stringent access controls are vital when managing IT systems for large organizations with complex hierarchies and multiple user levels.

3. Regular Security Audits and Compliance Checks

Conducting regular security audits helps in identifying potential vulnerabilities in the system. Technology sourcing companies should rectify identified vulnerabilities and ensure compliance with global data protection regulations such as GDPR or HIPAA. This not only protects client data but also shields the company from legal repercussions.

For example, a software development outsourcing company regularly audits its development and deployment processes. They check for security vulnerabilities in the code and ensure that the latest security patches are applied to their development tools and environments. By adhering to compliance standards like ISO/IEC 27001, they not only enhance the security of their software products but also gain credibility in the market.

Additionally, clients in the healthcare sector ensure compliance with HIPAA regulations, conducting thorough audits to check if patient data is handled and stored as per the standards, thus maintaining client trust and avoiding legal penalties.

4. Data Loss Prevention (DLP) Strategies

DLP strategies are essential in monitoring and controlling the shared data outside the company network. Implementing DLP tools can help detect potential data breaches and leaks by monitoring data transfers and blocking sensitive information from being shared unauthorizedly.

In one scenario, a technology sourcing company specializing in cloud services implements DLP tools to monitor data flow between on-premises databases and cloud storage. This setup effectively prevents the unauthorized transfer of sensitive client information.

Similarly, another firm offering software development services utilizes DLP solutions to detect and block any accidental sharing of proprietary source code by its employees. The DLP system is specifically configured to recognize unique code patterns, alerting the security team whenever such data is transmitted outside the internal network.

5. Employee Training and Awareness Programs

Human error often leads to data breaches. Regular training programs for employees on the latest cybersecurity threats, phishing tactics, and safe data handling practices are crucial. These programs should be designed to foster a security-first culture within the organization.

A network security service provider conducts regular employee training on identifying and mitigating ransomware attacks. Through simulations of real-world attack scenarios, employees become adept at recognizing and countering such threats.

Another IT consulting firm holds bi-monthly workshops on data encryption best practices, underlining the importance of securing client data in transit and at rest. These workshops increase awareness and foster a security-centric culture among the staff, significantly diminishing the risks of data breaches due to human error.

6. Robust Incident Response Plan

Despite all preventive measures, the risk of a data breach cannot be entirely eliminated. Hence, having a robust incident response plan is critical. This plan should outline the steps during a data breach, including containment strategies, notifying clients and regulatory bodies, and measures to prevent future incidents.

For example, when a software outsourcing company experiences a data breach that exposes client project details, its incident response plan immediately kicks into action. It includes isolating the affected systems, notifying the impacted clients with detailed reports, and collaborating with cybersecurity experts for investigation and remediation. In the aftermath, they upgraded their monitoring systems and refined their response protocols based on the learned insights.

Another IT sourcing company in data analytics services maintains an incident response plan featuring real-time threat detection and a rapid mobilization response team. The plan also includes a comprehensive communication strategy, ensuring all stakeholders are informed and engaged throughout the incident resolution process. Well-structured plans are essential in minimizing disruption and preserving client trust in challenging situations.


Protecting client data is a multifaceted challenge that requires a comprehensive approach encompassing robust encryption, strict access controls, regular audits, DLP strategies, employee training, and a solid incident response plan.

Is your technology sourcing company equipped with the latest strategies and tools to protect your client’s data?

Let the experts at ASB Resources assist you in strengthening your data security measures to ensure the highest level of data protection for your clients.  Schedule a call with one of our experts today!

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