Is Outsourced Data More Secure?

There has been considerable debate over whether companies can ensure data security and privacy when they outsource services to offshore providers. U.S. laws that protect information and safeguard privacy do not have extraterritorial jurisdiction, which means that, as offshoring proliferates, U.S. corporations are becoming increasingly dependent on foreign laws to protect their interests. The outsourcing and offshoring of financial and professional services have raised ethical questions regarding integrity, objectivity, disclosure, and client confidentiality. This article, first published in The CPA Journal in 2010, discusses these issues