When considering outsourcing, a customer should first examine his possible associate’s capability of safeguarding private business information from embezzlement, abuse, theft, loss or damage.
Here are some things the customer should look into.
• Have you selected an established partner, one that will match your business strategy and will understand how to maintain the necessary level of security.
• What are the outsourcing vendor’s IP protection practices and data security that will protect the customer’s private information?

• Does the vendor have an accepted policy about managing information security that can be implemented?
• What is the minimum data necessary for the vendor to complete the project?
• Will documentation of all source code of your project be provided? (This becomes your company’s property and must be legally protected.)
• Have you made it very clear that human resources are screened meticulously? Have you taken a look at the employee retention statistics of your potential vendor? It can reveal a lot.
• Have you closely examined the vendor’s practices related to employees, procedures and strategies and material security?
• What extra security strategies that will protect your sensitive data can be applied?
One thing you must definitely research is which other businesses your prospective vendor does business with. Are they your competitors? If so, make sure about how you will ensure that there is no exchange of information between the two teams.