How to Protect Data While Working With Offshore Software Development Companies: Encryption, Data Masking, and Secure Data Transfer

Offshore Software Development Companies

Hiring offshore software development companies revolutionizes software development services. In this practice, software developing companies can outsource tasks to developers from other countries. Further, it offers compelling advantages of lower costs and faster project delivery. Enterprise can access the large talent pool of software developers with this facility. 

However, collaborating with offshore partners includes data protection challenges. These are data breaches and cyber security threats. Besides, encryption, secure data transfer, and data masking can resolve this issue. 

So, in this blog, we will learn about data protection in offshore software development. Significantly, we will explore how encryption, data masking, and secure data transfer help in this area. 

Let’s start exploring!

Section 1: Data Security Issues in Offshore Software Development Companies

Besides all the benefits, hiring offshore software development companies poses serious risks like financial loss and reputation damage. Furthermore, this may result in losing customer trust. 

Software companies should be aware of various data security challenges. Those are:

  • Time-zone and geographic differences: Hiring offshore partners means collaborating with software developers across the globe. However, a round-the-clock working style can hamper communication while dealing with cybersecurity issues. 
  • Data exposure: Working with offshore developers implies sharing sensitive data via different networks. This may result in increased data exposure to cybercriminals. So, data breaches occur mostly in this case.
  • Difference in legal systems: Hiring offshore software development companies is difficult when it comes to differences in regulatory compliance. This is because every country has its own data protection laws and standards.
  • Human-induced errors: Human elements cause serious cybersecurity threats while collaborating with offshore teams. For instance, a lack of data security practices can result in generating weak links for cybercriminals. 

Section 2: Encryption: The First Line of Defense

According to a survey report, the global offshore IT outsourcing market value is about to reach US$512.50 billion in 2024. Therefore, a custom software development company in the US, including others, should be particular about adopting data protection practices. 

In this case, encryption offers a strong shield against unauthorized users. Following are the ways encryption empowers data protection in offshore software development companies. 

  • Encryption is responsible for transforming readable data into code. Further, decipherable keys can only make it readable, even after interception.
  • Moreover, this process helps in maintaining integrity and confidentiality to ensure data security.
  • This helps in adopting some encryption algorithms like RSA or AES. Further, these algorithms can protect data from both ends, like transit and storage.
  • However, the encryption process follows a symmetric method. This offers faster encryption by providing similar security keys for encryption and decryption.
  • On the other hand, there are asymmetric encryption methods offering different keys for encryption and decryption.
  • In-transit and at-rest encryption processes offer robust data security frameworks for offshore software development companies. 

Adopting encryption needs regular security assessment to check vulnerabilities. Moreover, leading organizations like software development companies in the USA should upgrade encryption standards periodically. This will help protect sensitive data and increase security levels.

Section 3: Implementing Data Masking

In simpler terms, data masking is a hiding technique. It helps convert sensitive data into an indecipherable version. Significantly, this technique ensures data sharing in a way that protects information from prying eyes. 

Let’s learn how data masking works in data protection while working with offshore software development companies.

  • Software developing companies use static data masking to alter sensitive data into a sanitized copy. Further, it helps create data backup. This strategy restricts the reconstruction of the original copy.
  • Data masking involves altering data. It produces irrelevant formats for unauthorized users.
  • However, data masking also uses encryption algorithms to protect data.
  • Data tokenization is another masking technique for sensitive information. This process alters data into a fake but non-exploitable realistic value.
  • Pseudonymization under GDPR is a beneficial data masking option while hiring offshore software development companies. Meanwhile, this helps in removing personal identifiers from sensitive data.
  • On the other hand, data shuffling offers a suitable data masking technique. This process helps in switching original data to a fake dataset.
  • While partnering with offshore software development teams, data masking integration first requires identifying sensitive data. Moreover, choosing the right technology for data masking improves data protection. 

Section 4: Secure Data Transfer Process

Software developing companies should adopt secure data transfer protocols for risk-free data transmission. Further, this strategy ensures that data remains safe during local and international transfers. 

Let’s figure out how this process helps improve data protection in offshore software development centers. 

  • While collaborating with offshore software development companies, enterprises need to enable virtual private networks. As a result, this can provide encrypted and secured connections.
  • VPNs are significant for offshore software development centers where developers need to access data from various locations.
  • Further, software developing companies can use secure file-sharing platforms to share files securely with offshore partners.
  • For instance, one can use encrypted email as a secure data transfer protocol.
  • HTTPS secures network connectivity for secure communication. Further, it can verify the authenticity of servers and enable encryption in data exchange. 
  • As per the sensitivity of data, companies need to implement a secure data transfer strategy. However, regular updates and assessments are critical components of data protection. 

Section 5: Benefits of Data Protection Practices in Offshore Software Development Companies

Adopting data protection practices has potential benefits for offshore software development companies. These are:

  • Enhanced data security
  • Reducing financial loss
  • Building customer confidence and trust
  • Implementing regulatory compliance
  • Assessing and managing critical risks of data breaches
  • Gaining competitive advantage
  • Improving productivity and operational efficiency in software development companies
  • And maintaining reputation 


In this blog, we have clearly discussed the importance of encryption, data masking, and secure data transfer in offshore software development companies. These technologies protect sensitive data by restricting unauthorized access. However, by adopting these strategies, software development companies can ensure compliance with data privacy regulations. 

As a result, these processes help maintain brand reputation and user trust. Further, custom software development companies can improve their efficiency and productivity with a secured data transfer system. These strategies will help reshape the future of software development in terms of securing valuable datasets.

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