Key Takeaways
1. MSPs build third-party partnerships with other technology providers to address the rapidly growing demands in cybersecurity while maintaining the same level of strict compliance.
2. Third-party partners or vendors often offer IT services for MSPs.
3. I.S. Partners is a certified audit services provider that helps organizations achieve compliance through comprehensive evaluations based on globally recognized standards.
The Significance of Third-Party Partnerships in MSP Compliance
As demands for IT cybersecurity services consistently grow, more services become available for MSPs. However, not all MSPs can meet the demand – enter third-party solutions providing compliance services.
Partnerships between MSPs and third-party solutions help support the growing need for cybersecurity without fully committing to expanding a team. Third-party solutions offer limited services that may include consultations, audits, contracting, and other project-based jobs.
In some cases, the partnership between these two entities becomes invaluable for the consistent growth of service companies.
Third-party partnerships provide several benefits and services for MSPs, including the following:
- Cybersecurity support. Third-party solutions often specialize in a particular field of the tech industry. These teams can offer a more extensive approach to security controls for MSPs and service organizations. Third-party teams have dedicated tools and equipment for improving the detection and mitigation of data breaches.
- Enhanced operational resilience. This-party partnerships can act as supporting teams when main MSP services are facing downtimes. This can promote seamless operations and prevent any disruptions from the main service organization’s services.
- Bridging gap in knowledge expertise. While MSPs are already knowledgeable in cybersecurity, branching out to a new field may require extensive investment of time and other resources. Partnering with third-party services can become a quick and effective solution for such cases. Third-party services can offer specific and complex services for MSPs.
- Enhancing scalability of operations. Third-party solutions help MSPs address concerns about meeting demand. When surges in cybersecurity demand present themselves, MSPs can rely on trusted third-party solutions to help them take over and scale up their operations. The great thing about third-party scalability is that they do not require long-term commitment with the MSPs and can provide sporadic services at any time.
- Compliance and regulatory assistance. Third-party partnerships can also improve internal systems. These services can be used to perform a full-scale assessment of an MSP’s security system and help them identify key areas for regulatory compliance.
Third-party partnerships are basically an extension of the MSP industry. They serve by supporting main MSPs and ensuring that service organizations maintain compliance with strict standards.
What Are the Compliance Requirements for MSPs and Third-Party Partners?
MSPs are given access to one of the most precious commodities in any market – customer information. As such, MSPs are bound by several different regulations and must pass strict certification processes to show the adequacy of their security services involving sensitive data.
There are several certifications and regulations that MSPs must be aware of. Some of them are mandatory, whereas some are supplementary but critical.
Here are some of the industry standards and certifications for every MSP:
- Health Insurance Portability and Accountability Act (HIPAA). HIPAA compliance oversees the handling and processing of sensitive patient health information. The regulation applies to MSPs dealing with healthcare organizations.
- Service Organization Control 2 (SOC 2). MSPs handling customer information on behalf of their clients are subject to the audit process of SOC 2. The compliance requirement of SOC 2 audit for MSPs are equipped with the right security controls to protect customer information.
- General Data Protection Regulation (GDPR). The General Data Protection Regulation applies to MSPs working with organizations under the EU. It is a law that outlines general requirements for protecting customer information.
- Payment Card Industry Digital Security Standard (PCI-DSS). This regulation applies to MSPs that deal with cardholder information, which may be done through working with payment brands and other vendors.
- National Institute of Standards and Technology framework (NIST). NIST is an organization under the U.S. Department of Commerce that develops robust security measures that help businesses manage cyber information and protect their systems from breaches.
- International Organization for Standardization (ISO). This international organization establishes standards, such as the ISO 27001, that provide guidelines for the best practices in managing information security.
All compliance requirements and certifications aim one thing – to protect customer information from potential threats. The requirements vary depending on the industry to which they apply.
Different industries may be faced with other types of threats, therefore requiring a different approach.
Consult with industry experts such as I.S. Partners. Our group of cybersecurity professionals can guide and audit your security system to comply with the most stringent regulations available.
What Are the Criteria for Choosing a Suitable Third-Party Partner?
Choosing the correct third-party partner involves a tedious selection process that must align with the main objectives of your company. Most of the work goes into the hands of third-party vendors for MSPs. As such, partners must be reliable and pass security requirements.
Consider the following criteria when choosing a third-party partner to work with.
- Service quality. The third-party vendor must be able to deliver your requirements on time and with the quality you expect. The first layer to this is that the vendor must uphold the same standards as your company does, proven by certifications or recognitions.
- Reputation and reliability. Choose partners with a proven track record on jobs aligning with your brand objectives. Always check for references and testimonials.
- Expertise and experience. Third-party service providers have their specializations. Select a vendor with expertise that aligns with your objectives and main services.
- Scalability. Third-party partners must also be selected based on their ability to handle the required volume of work. Look for flexibility in terms of services, pricing, and contract terms.
- Stability of operations. Evaluate whether the third-party vendor is stable in terms of operations and financial aspects. This criterion can determine how well they can deliver the required services.
By carefully evaluating potential third-party partners based on these criteria, MSPs can make informed decisions that support their business objectives and contribute to the success of their clients.
It is always critical to comprehensively evaluate candidate third-party partners before acquiring their services. Choose partners that align with your brand objectives and goals.
What Are the Challenges of Utilizing Third-Party Partnerships for MSP Compliance?
Working with third-party partners does not come without any risks. Adding another layer of the working team that handles sensitive information is a perfect ground for vulnerabilities and data breaches.
Below are more challenges that MSPs may face when partnering with third-party service providers.
- Over-reliance with third-party partners. While MSPs hand over operations to third-party partners, providing them with the majority of the work can sometimes become problematic. Should the partner have issues with providing services, a big part of the main MSP’s operation may also become non-functional.
- Unclear agreements. Before entering a partnership with a third-party services provider, MSPs must clearly draft service-level agreements. Unclear agreements can result in disputes and inefficiencies in operations.
- Inadequate vendor management. Managing multiple third-party vendors and subcontractors can be complex, especially when each partner has its compliance obligations, contractual agreements, and service-level expectations.
- Cultural incompatibility. Differences in working culture and communication styles can birth problems for two partnering companies. Miscommunication can produce errors, which can be costly and dangerous, especially when handling data security.
- Unverified security standards. Not all third-party vendors have the same security standards as your company. This is a critical consideration when choosing a partner business. Verify which standards the third-party provider follows to ensure data security.
Addressing these challenges requires proactive risk management, clear communication, robust contractual agreements, and ongoing monitoring and oversight of third-party partnerships. By carefully selecting and managing their partners, MSPs can mitigate compliance risks and ensure the security and integrity of their services.
How Do MSPs Ensure Data Privacy Is Maintained When Utilizing Third-Party Solutions?
MSPs handle customer information first-hand. As data gets passed down to third-party solutions, more vulnerabilities and risks are introduced.
As such, MSPs must take precautionary measures to ensure data security.
MSPs should follow these steps to ensure data protection.
- Conduct a comprehensive vendor assessment before signing an agreement.
- Conduct a risk assessment process before proceeding with the partnership.
- Create comprehensive and well-reviewed contractual agreements. Clearly outline critical agreement points, including data protection protocols.
- Set up limitations and data minimization for the information that third-party vendors get access to.
- Encrypt sensitive data to enforce security.
- Implement access controls and proper authentications to restrict access to sensitive information.
- Perform regular audits and evaluations on third-party operations.
- Request an incident response and notification plan from the third-party vendor.
- Synchronize MSP and third-party partner understanding of security protocols through training programs.
- Establish a continuous monitoring system.
By implementing these strategies, MSPs can effectively manage data privacy risks and ensure that personal data is handled securely and in compliance with applicable laws and regulations when utilizing third-party solutions.
Enhance Your Cybersecurity Through I.S. Partners’ Trusted Compliance Audits
Cybersecurity is a critical and fragile part of any company handling consumer information. That being said, compliance with regulations established to safeguard information is a must.
This is where service organizations specializing in compliance audits come into play. I.S. Partners specializes in conducting security audits, risk assessments, and building security controls for different organizations.
Allow our industry experts to evaluate your operations and identify potential vulnerabilities. We can help you prepare for compliance audits and guarantee passing through comprehensive audits.
Contact us today to discuss our services or request a quotation.
FAQs
