Outsourcing software development gives access to global talent but introduces compliance and security risks. For US tech leaders, failing to account for these risks can create legal, financial, and reputational damage.
This article explores the most pressing risks and how Howdy.com mitigates them.
Compliance with local labor laws
- Contracts. Local laws require specific language and protections.
- Benefits. Each country mandates unique packages.
- Termination. Missteps in layoffs can trigger penalties.
Data security vulnerabilities
Remote access expands the attack surface for sensitive systems.
- Weak security protocols. Contractors may use unsecure devices.
- Unauthorized access. Lapses in offboarding expose company data.
- Cross-border data transfers. Different laws create compliance challenges.
Intellectual property risks
IP protections vary across countries.
- Ownership disputes. Without clear contracts, IP can be contested.
- Enforcement challenges. Legal recourse may be limited abroad.
- Knowledge leakage. Turnover can lead to lost or exposed IP.
How Howdy.com ensures compliance and security
Compliance and data protection are non-negotiable in remote hiring. Howdy.com integrates safeguards into every step of the process.
- EOR model. Compliance and payroll handled by experts in each market.
- Vetting protocol. Identity and background verification at every stage.
- Secure infrastructure. Controlled systems and processes for data handling.
- Local expertise. On-the-ground HR and legal support across LatAm.
Conclusion
Outsourcing without compliance and security safeguards is a liability. With Howdy.com, leaders gain confidence knowing every engineer is vetted, compliant, and secure.