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An increasing number of companies are outsourcing internal functions to provide a significant cost savings and other benefits to the company. While outsourcing can be extremely beneficial, companies must carefully manage the risks created by placing data into the hands of an outsourcing provider. Outsourcing frequently results in a company’s data being stored outside of the company’s firewalls, often in systems managed by the outsourcing provider. Outsourcing can also result in movement of the company’s data to new and different countries, particularly when the outsourcing involves cloud computing.

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