A8.30 Outsourced development

Outsourcing software development can bring cost-efficiency, scalability, and access to specialized expertise. However, it also introduces security risks, such as loss of control over development practices, potential exposure of sensitive data, and inconsistent adherence to secure coding standards.

ISO 27001 A8.30 Outsourced development emphasizes that organizations must manage and monitor the security practices of third-party developers. This includes setting clear expectations in contracts, ensuring compliance with secure development practices, and conducting security reviews throughout the development lifecycle.

Implementation Guide #

Step 1: Define Security Requirements in Contracts

• Ensure that contracts with third-party developers clearly define security obligations.
• Include clauses covering secure coding standards, access control, data protection, audit rights, and confidentiality.
  → Tool Recommendation: Use DocuSign, Adobe Acrobat Sign, or Ironclad to manage and store signed contracts securely.

Step 2: Vet and Assess Development Partners

• Conduct due diligence to assess the security posture of outsourcing vendors before engagement.
• Evaluate their security certifications (e.g., ISO 27001, SOC 2) and past security incidents.
  → Tool Recommendation: SecurityScorecard, BitSight for continuous third-party risk monitoring.

Step 3: Enforce Secure Development Standards

• Require adherence to your organization’s secure coding policies and development lifecycle standards.
• Provide external developers with secure coding guidelines.
  → Tool Recommendation: Share internal policies via Confluence, Notion, or SharePoint.

Step 4: Monitor and Audit Development Activities

• Set up checkpoints for reviewing source code, development progress, and adherence to security controls.
• Include security testing (SAST, DAST, penetration testing) in project milestones.

→ Tool Recommendation:

• GitHub/GitLab for code management and pull request reviews
• Checkmarx, SonarQube, Veracode for static code analysis
• Jira, Azure DevOps for tracking tasks and audit logs

Step 5: Restrict and Monitor Access

• Provide outsourced developers with the minimum necessary access to systems and data.
• Use time-bound and role-based access controls.

→ Tool Recommendation:

• Okta, Azure Active Directory, CyberArk for access provisioning
• Splunk, Wazuh, LogRhythm for monitoring developer activities

Step 6: Protect Intellectual Property and Source Code

• Use secure repositories with version control and permission management.
• Ensure that all source code is owned by the organization and stored centrally.

→ Tool Recommendation:

• GitHub Enterprise, Bitbucket, or GitLab
• Encrypt repositories and enforce multi-factor authentication (MFA)

Step 7: Conduct Post-Development Security Reviews

• Perform code reviews and vulnerability assessments before deploying externally developed code.
• Run integration and acceptance testing with a focus on security and compliance.

Templates #

• Third-Party Development Contract Template with Security Clauses
• Outsourced Developer NDA
• Secure Coding Compliance Checklist
• Third-Party Security Review Checklist
• Source Code Ownership Agreement

Example #

A healthcare software company outsourced a mobile app to an offshore vendor. Initially, there was no formal agreement on coding standards or data handling. After a risk assessment, the company revised the contract to include ISO 27001 compliance, secure coding requirements, and regular code reviews. They used Checkmarx for code scans, Bitbucket for version control, and Splunk to monitor developer activity. As a result, no critical vulnerabilities were found during final testing, and the app passed a third-party security audit.

How to Comply #

To comply with ISO 27001 A.8.30, organizations should:

• Include robust security terms in third-party development contracts.
• Perform due diligence and risk assessments for outsourced partners.
• Monitor and enforce adherence to secure development practices.
• Control and track access to systems and data used in development.
• Review and test externally developed code for vulnerabilities.

How to Pass an Audit #

Key Documents to Prepare:

• Contracts with security clauses
• Vendor security risk assessments
• Secure development and access control policies
• Code review and testing reports
• Logs of access and monitoring during development

What the Auditor Will Check:

• Are outsourced developers contractually bound to follow security practices?
• Are development activities reviewed and monitored?
• Is access to systems and data adequately restricted and logged?
• Is there evidence of post-development security reviews and testing?

Top 3 Mistakes People Make #

• Not including clear security obligations in outsourcing agreements
• Giving third-party developers unrestricted access to internal systems
• Skipping security testing and code reviews of outsourced software

ISO 27001 Outsourced Development FAQ #

Q1: Can we rely on the vendor’s security certifications alone?
No. Certifications like ISO 27001 or SOC 2 are useful but not sufficient. You must still perform your own due diligence and monitoring.

Q2: What if the outsourced development team uses subcontractors?
Ensure that your contract requires disclosure and control over any subcontracting, and that the same security expectations apply to them.

Q3: Do we need a separate access policy for outsourced developers?
Yes. Outsourced personnel should have limited, monitored access distinct from internal employees, ideally with expiration and review mechanisms.

ISO 27001 Controls and Attribute Values #

By tightly managing outsourced development, organizations can retain control over code security, reduce risks of data exposure, and ensure compliance with ISO 27001 standards.