Outsourcing IT? Here’s Why You’re Still Responsible for Cybersecurity

Outsourcing IT services can be a smart business decision. It offers access to specialized expertise, reduces operational costs, and frees up internal resources. But when it comes to cybersecurity, outsourcing doesn't mean offloading responsibility. Regardless of who manages your IT infrastructure, your organization remains accountable for protecting sensitive data and ensuring regulatory compliance.

In this short video, Jeff Johns from Herbein’s Risk Management practice explains how to identify control gaps and ensure your outsourced IT provider is meeting your cybersecurity needs.

Why Cybersecurity Responsibility Remains Yours

1. Legal and Regulatory Accountability: Regulatory bodies such as the FTC, SEC, and state-level agencies hold businesses accountable for data protection. If a breach occurs, the liability doesn't rest solely on your managed service provider (MSP) – it rests on you. Compliance frameworks like GDPR, HIPAA, and GLBA mandate that organizations ensure their vendors adhere to stringent security standards. Even if your organization isn't subject to a specific compliance framework, other laws such as the NY SHIELD Act come into play. These laws focus on the location of your customers rather than where your business is domiciled.
2. Reputational Risk: Even if a breach is caused by a third party, customers and stakeholders will hold your business accountable. A damaged reputation can lead to lost trust, reduced revenue, and legal consequences. Effective cybersecurity oversight of your outsourced IT is essential to minimize this risk.
3. Contractual Oversight: While contracts with IT providers may include security clauses, they often have limitations. It's crucial to have clearly defined terms regarding security expectations, breach notification timelines, and incident response procedures. Regular audits and third-party assessments ensure your providers meet compliance standards.
4. Shared Responsibility Model: Cloud service providers and MSPs often operate on a shared responsibility model. While they manage the infrastructure, your organization is typically responsible for securing data, configuring access controls, and monitoring anomalies.

Take Ownership of Your Cybersecurity

Outsourcing IT services can enhance operational efficiency, but cybersecurity responsibility does not end when you sign the contract. By maintaining strong oversight, establishing clear agreements, and collaborating with your providers, you can safeguard your organization from cyber threats.

At Herbein, our cybersecurity experts are here to help businesses navigate the complexities of vendor management and ensure their digital assets remain protected. If you've been searching for nearby outsourced IT support, know that choosing the right provider is only part of the equation — maintaining oversight is key. Watch the video above and contact our Risk Management team today to learn how we can help strengthen your cybersecurity posture.