Posts Tagged ‘Public sector offshoring’

Public sector, private data – is outsourcing the Service Desk too risky?

June 3, 2010

As the Treasury announce cuts amounting to £6.25bn, £95m of which deriving from a reduction in IT spending, attention is once more directed towards outsourcing as a means to reduce IT expenditure. But Information Technology stores and processes large amounts of personal, sensitive and confidential data, and when it comes to the public sector it can have a very high level of sensitivity, hence a lot of trust is bestowed upon personnel that have access to it. It is already difficult to place confidence in in-house staff, due to the high number of data breaches that are perpetrated by internal staff, backed up by statistics, but the option of off-shore outsourcing elevates the threat level from code yellow to code red.

Widespread use of Cloud computing is unlikely to become a reality in the foreseeable future: strict regulations relating to the Data Protection Act, which the public sector in particular follows religiously, make it virtually impossible to obtain assurances that the data stored outside the organisation’s premises is adequately controlled and kept secure. However, remote access provided to support staff based at another location, be it in the same or another country, still presents a risk in that information can still be collected and recorded. 

With the government CIO, John Suffolk, encouraging the use of outsourcing to countries offering cheaper labour as a cost-cutting strategy, it is time to understand to what extent this can be done and if the public sector can really benefit from off-shoring the Service Desk after all.

Organisations in the public sector are essentially different from private companies: although it seems obvious, it is important to bear in mind that they are funded by British taxpayers, and therefore work for them. However, providing access to personal and sensitive data to companies thousands of miles away and outside the European Union which have different culture, ethics and laws might put the safety of their personal details at risk. For instance, information such as identity, financial and health records can fall into the wrong hands and be used for malicious intent. Not long ago, ITV found that British medical and financial records held abroad could be bought for just a few dollars. No matter how ‘rare’ this event might be, it is not a risk Britons are prepared to take, if the decision were up to them.

It is certainly difficult for organisations in the public sector to carry out a satisfactory level of service when their budgets are being reduced, but it is important to think about the consequences of outsourcing the IT department: a move initially intended to save money can end up making the organisation lose money as a result of large fines and court cases, and most importantly, it can lead to a loss of credibility and reputation.

Recognising a ‘safe’ provider is not easy, especially as identification of a risky supplier often only happens once a breach has been committed, when it might be too late for an organisation to escape liability and to save face. However, it is possible to assess a provider’s trustworthiness before a breach occurs: they should follow Best Practice and have a mature Information Security Management System in line with the ISO 27001 standard, assessed through an independent security review, risk assessment and gap analysis.

There are also better alternatives to extreme or risky versions of outsourcing. For example, the IT department can be kept internal, for better control, but be managed by a third party which is aware of the stringent safety measures necessary for working in this peculiar sector. That said, most information security breaches pertain to threats inside an organisation and are in many cases not a malicious act but a consequence of ignorance, frustration or lack of risk awareness. Well-trained and appropriately-skilled Support staff can reduce these security incidents to a minimum, as would implementing organisational-wide information security awareness sessions.

Management commitment within the industry is especially important to convey the significance of protecting personal and sensitive data and the seriousness of breaching the Data Protection Act, which does not only concern IT staff. Extensive training is necessary to raise awareness across the entire organisation – whenever there is a data breach it is never the provider that suffers the worst consequences, but the organisation’s reputation.

 

David Cowan, Head of Infrastructure and Security

This opinion piece appears in this week’s Dispatch Box on Public Technology: http://www.publictechnology.net/sector/public-sector-private-data-outsourcing-service-desk-too-risky

Is information safe enough at NHS trusts?

April 1, 2010

It looks like NHS trusts are starting to realise that Information Security is not just a matter of using complex passwords, locking drawers at the end of the day and installing the latest firewall and antivirus solutions. The Information Commissioner has been particularly critical of the NHS in the past due to a high proportion of security breaches as a result of inadequate Information Security controls and staff awareness programmes.

The result has been an NHS wide initiative to ensure all removable media including laptops and USB drives are encrypted. However, this may not be enough. As reported by the BBC recently, a remarkable amount of non-medical personnel at UK trusts have access to patient records including recent medical history – at least 100,000 including porters, hospital domestics and IT staff, a Big Brother Watch survey stated.

It seems like the risk is not only from staff at off-shore service providers collecting and selling British data to make a few extra pounds, as reported on ITV not long ago. It also comes from internal personnel who have the potential to access extremely sensitive data without the appropriate authority or preventative controls.

 This is not surprising: data collected in the BIS Information Security Breaches Survey 2009 illustrated that 60 per cent of all companies suffered a security breach in the previous two years and of these, 50 per cent were perpetrated by staff, often premeditated or malicious but in many cases simply a matter of a stolen laptop or lost removal media device.

There is an obvious need for greater awareness of information security regulations across the entire organisation, and measures must be taken to protect personal and sensitive data. Management in particular need to be involved in order to avoid resentment, complacency and to ensure everyone takes the matter seriously.

In the case of the NHS, information at risk is highly sensitive and breaches can have very serious outcomes. Consequences of Data Protection Act breaches are not confined to costly fines and a few employees being fired – it is the organisation’s reputation that suffers the most.

This risk can be mitigated by conducting an independent gap analysis and security review which would assess compliance with Information Security best practice, i.e. ISO27001, IG Toolkit v7, and certify that information held within an organisation is secure, reducing the risk of incidents and the cost to the business.

Equally important are staff awareness sessions to which not only general staff but executive participation is required, which is vital in creating a culture where Information Security is part of the organisation’s DNA.

 

David Cowan, Head of Infrastructure and Security