Question

Describe at least three potential problems global businesses face when they outsource or subcontract their work to companies in other countries? (e.g., a U.S. sneaker company outsourcing the manufacturing of its sneakers to a separate company in China or Vietnam.) (do not answer)

How do you deal with the security issue and confidentiality issues? (answer this)

Answer 1

When dealing with outsourcing there may be various security and confidentiality issue that may arise. This is mainly because the laws and regulations vary from country to country and the vendor country may not have strict laws and regulation on security matters. This could be structural or cultural manifestation.

There are several ways this issues can be tackled. They are

1. Take over the key operations where there could be security concern: you could undertake a joint venture kind of operation where your company handles the security protocols between the two companies.
2. Sign NDA: a non-disclosure agreement between the parties is a good way to start. However, this is not a foolproof idea.
3. Train the vendor on security/confidentiality requirement: your team could train and establish process at the vendor location so that they can match the security/confidentiality requiremen.