There has been a lot written in recent times about the risks surrounding outsourcing with particular emphasis on the new privacy laws as well as the general protection of data and the access to personal information of clients.

Why Outsource When You Can Insource

The recent article published in the annual software guide published by the Institute of Chartered Accountants in Australia made particular references to these issues and the risks that Australian accounting practices face when confronting the issue of outsourcing.

However, there is an alternative that eliminates or greatly reduces these risks and that alternative is “insourcing”. What do we mean by insourcing?

Insourcing is the process by which a member of staff or contractor accesses your server by use of Remote Access Connection and works on your server to undertake the various tasks that need to be undertaken. The administrator of the practice’s network sets the rights and access restrictions of the person logging in to the server and no data can be transferred from the home server to the remote user’s computer unless these permissions are allowed.

The benefits of insourcing are that the person using the remote access connection can be located anywhere that there is a quality internet connection, their connection and the files that they access can be monitored by the network administrator, access is restricted to only the areas that relate to the work being performed and there is no transfer of data from the network to the remote user. Under this process the remote user must use the software provided by the hoist and the host can dictate how and when the work is to be performed.

There are many that would raise concerns that although data is not transferred the remote user can still use the information accessed for purposes other than for the reasons of completing a tsk set by the practice. This is possible and so it is paramount that any insource provider is the subject of the same level of scrutiny in assessing their suitability and reliability. A quality insource provider would have systems and processes in place that guarantee the security and quality concerns of any potential user. 

Join us at Offshoring 2016 coming up 21 July in Sydney, where we are an event sponsor, and all of your offshoring questions will be answered.

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Tim Davidson, Connect Accounting Connect Accounting