Beyond borders: Navigating the complexities of global data compliance

By Darren Christie, Lead Consultant, prosource.it

Global enterprises operating across multiple jurisdictions must navigate a patchwork of laws and regulations that dictate where data can be stored, how and where it can be transferred, and who can access it. This is especially relevant in the cloud where data often crosses national borders. 

More than 100 countries have data privacy and security laws and regulations, making compliance challenging for global enterprises. These laws are nuanced and vary significantly from country to country, but in general they prevent certain types of data from leaving the country’s borders. This is evident in specific national policies. For example, Indonesia imposes stringent rules on financial data, requiring it to be stored domestically. In China, the Data Security Law (DSL) imposes strict controls on exporting "important" and "core" data, and certain data cannot be transferred outside China without government approval. 

The risk of non-compliance

The implications of failing to adhere to data sovereignty regulations can be severe. While financial penalties are a concern, the more significant risk is operational. A company could face restrictions, reputational damage, or even lose its operating license.

Voice regulations

In Asia and many Middle Eastern countries, for example, there are strict controls over voice data. Governments in these regions often prevent voice data from leaving the country. This means that cloud-based voice solutions, such as Microsoft Teams Voice, may not be deployable in these countries, requiring businesses to modify their IT strategies accordingly.

A one-size-fits-all approach won’t work

The key takeaway for businesses is that there is no universal blueprint for managing data across borders. Each country has its own legal considerations that influence how data must be handled. How a company manages the data often depends on its appetite for risk: 

• Some companies have a zero-risk blanket approach to sharing data to the cloud – for example by running custom scripts that block OneDrive syncing.
• Others may choose to use local data centres rather than a cloud solution to ensure compliance.
• Some may only place restrictions on the types of data that can’t legally be uploaded to the cloud. In these situations, employee education and communication play a crucial role in mitigating the risks and this forms a key part of all our transformation programmes. 

When we are working on complex transformation programs at prosource.it, we assess site readiness before even starting the project and assessing data storage, processing and transfer forms a key part of this.

IT partner to navigate the complexity

While technical execution is important, companies need IT partners who not only deploy technology, but do it in a way that complies with the data laws across different regions. To successfully manage regulatory risks requires a deeper understanding of the evolving legal landscape and the ability to anticipate challenges before they arise.