One of the hottest topics in the past months has been General Data Protection Regulation in the European Union coming to effect in May 2018. Just based on my daily LinkedIn feed, GDPR seems to be an endless source for articles and blogs addressing the change from different angles – and for a justified reason.
Companies, that by now are not well prepared with a clear roadmap for implementation and compliance, risk violation of GDPR regulations which can have a significant impact on company’s financial, legal and reputational standing. As a consumer, EU citizen and a professional in the outsourcing business, I am delighted that many multinational companies, including my employer Teleperformance, are not viewing this comprehensive overhaul of EU data protection rules only from compliance perspective but are in fact using it as a benchmark for redefining their global privacy policies and also applying for Binding Corporate Rules (BCR) approval.
It is good to note that GDPR applies to both controllers and processors of personal data and that BCR approval, however, does not provide a basis for transfers made outside the group. Thus, companies that already have or intend to outsource e.g. their customer service operations or IT services, will need to ensure that their partners, including their network of service providers, are compliant as well. Although I believe that in the Nordics we have quite high awareness what comes to data privacy issues, a blog I recently came across was a good reminder that cutting the corners in data security in outsourcing deals is still not uncommon. When GDPR becomes effective, this kind of ignorance will have severe detrimental consequences.
When it comes to e.g. customer service outsourcing, is it enough that your ecosystem is certified and audited? Fraud is an increasingly growing problem – Cybercrime costs are projected to reach $2 trillion by 2019 which is an increase by almost 4 times from 2015. Research by Teleperformance Customer Experience Lab (CX Lab) in 2016 found that over 70 percent of defrauded customers will churn or reduce their wallet share in a company if their data is subject to theft or fraud. Protecting information, therefore, is key to ensuring the prosperity of your business. As contact centers are high risk entry points for data breaches, proactive fraud prevention should be on every customer service function’s continuous agenda. In order to truly safeguard your business and customer data, it is essential to build a strong security culture within the team. This and other relevant observations from a recent Frost & Sullivan security report, focusing on customer service environment, are outlined in my colleague’s blog. If you are interested to read the full report, you can access it here.
At Teleperformance, we always prioritize our clients’ and customers’ security. To learn more about our strong culture of security and how we are adapting to GDPR, please check out our White Paper The Road Ahead: Meeting the Challenges of Data Privacy Regulations.