April 7-10, 2025.
24 Oct Breaking out of the modular monolith: Data security in future-proof VMS
As the size of the contingent workforce grows, so does the need for organizations to rely on Vendor Management Systems (VMS) to manage sensitive vendor, workforce, and financial data. Proportionately, the risks associated with data breaches and outdated security measures also increase.
According to the IBM Cost of Data Breach Report, “The global average cost of a data breach increased 10% over the previous year, reaching USD 4.88 million.” While these aren’t small numbers, the good news, and one of the most notable takeaways from the report, IBM notes, is that “On the defender side of the equation, researchers also found applying security AI and automation is paying off, lowering breach costs in some instances by an average of USD 2.2 million.”
Automation is paying off, especially for organizational leaders who realize the ROI on investing in flexible, centralized technology that can withstand change and pivot around shifts in talent structures like the rise of a more demanding, higher-skilled contingent workforce.
The data security landscape of legacy VMS technology
You can think of modular architecture as a software design that divides your solution into smaller, independent pieces that need to be coded and then connected to work together. Most VMS, for example, require separate modules for staff augmentation, worker tracking, and statement of work capabilities. While often touted as a standard based on simplicity, this architecture leaves organizations reliant on IT teams, hard code, long wait times, and multiple implementations.
A modern VMS has several distinct advantages over hardcoded, legacy VMS, which can require significantly higher levels of cost and effort in areas like security, scalability, integrations, and ease of use. As complexity of needs increases with organizational growth and digitization, so does the breadth and flow of contingent workforce data. Issues arise when organizations expect the modular architecture of the legacy VMS to be able to keep up with the changes it wasn’t built for. In a 2024 Data Threat report, Thales notes that even though operational complexity is viewed as a topic of critical concern for most companies, 15% of businesses can classify little to none of their data. Findings like these highlight the struggle many businesses face when it comes to stepping outside their comfort zones when it comes to evolving tech needs and finding solutions that can make the most out of the data available
Security pitfalls of modular architecture
The modular architecture of legacy VMS often results in additional challenges providing comprehensive security measures in a progressively sophisticated cybersecurity climate due to potential technological stagnation and overreliance on IT. Paired with alarming insights into the high levels of security staffing shortages which are noted to be on the rise, notes IBM’s 2024 Data Breach Report, modular architecture can create more vulnerabilities.
Rochester Institute of Technology’s research on Security Architecture Weaknesses dives into the importance of “secure by design” architecture and works as an example to show the complexity of vulnerabilities that badly coded architecture design can expose organizations to.
7 ways modular architecture can expose organizations to risk:
1. Integration challenges
Modular vendor management systems tend to experience siloing within the system. Integration issues such as complex, code-heavy configurations, issues with data flow, or limited interoperability mean they generally need more touchpoints, which in turn opens them to more vulnerabilities. In their 2024 Data Breach Report, IBM notes that “IT failures or human error caused nearly half of all breaches.”
2. Decentralized control and excessive user permissions
In a modular VMS, disorganization within user permissions can make it harder to enforce consistent access across all modules, and it can be easy to slip into privilege creep, a situation where over time, users accumulate excessive, often unnecessary permissions, resulting in the potential for escalated security threats. Without unified user authentication and role-based access control, there is bigger likelihood of actors being able to access information beyond authorized permissions and making critical decisions in silos.
3. Reporting and Audit challenges
Regulatory entities like SOX, CPPA, and GDPR often require regular audits and detailed reports on data access, usage, and protection measures. With data being siloed within the application, reporting across modules can be a significant challenge and a drain on resources.
4. Delayed or inconsistent updates and patches
Modules built on varying tech stacks may face issues of scheduling updates and version control. This can lead to inconsistencies and vulnerabilities in patching due to delays or technical incompatibilities. According to TuxCare, a company dedicated to enterprise-grade security, these can lead to significant consequences like compliance issues, risks of increased attacks, decreased productivity, operation disruptions, and longer and costlier patching processes.
5. Data transmission issues
To support many organizational functions, data may be often shared across many modules. Ensuring that all information is copied correctly, protected, and not duplicated can be a challenge, especially if each module has different security protocols.
6. Fractured security testing
While modules may be tested individually, data security issues may arise when these modules are interacting or being integrated. Issues like improper data flows, integration flaws, or interface weaknesses can go undetected or be exploited. With each additional module, the attack surface level expands, exposing organizations to further vulnerabilities.
7. Compliance issues
Modular systems may have differing levels of compliance, leading to issues with the enforcement of security standards. Issues like data breaches and slow incident response times can put an organization at risk of non-compliance fines and loss of trust.
Change in how organizations prioritize data security is coming
According to Garnter’s latest report, API protection and security is considered a growing interest for organizations choosing cloud-based applications, with projected growth of 40% of organizations strategically basing their buying decisions on API protection and security by 2026 from the current 15%.
Furthermore, one of Gartner’s key findings on managing threat exposure highlights that “Through 2026, more than 40% of organizations, including two-thirds of midsize enterprises will rely on consolidated platforms or managed service providers to run cybersecurity validation assessments.”
How does a VMS built on Salesforce keep your data secure?
Salesforce’s primary purpose is to help businesses manage customer and vendor data, business processes, and customer interactions in the safest possible way through built-in security features and controls within its ecosystem.
With a fully extendible, non-modular architecture that unifies workforce management and stores all data securely on ONE platform, Salesforce’s robust data security features protect customer information and ensure compliance with security standards.
Salesforce’s Enhanced Security Features
Salesforce, as a leading cloud platform, includes built-in security features like:
Privacy Center: This add-on helps manage the whole lifecycle of data:
- Data Retention and Archive: Keep data only as long as needed, then archive or delete it based on privacy rules.
- Data Subject Rights: Automate people’s requests about their data, such as deleting or anonymizing it.
- Privacy Analytics: Gives insights on data privacy to keep it a priority for your business.
Security for APIs: Salesforce provides comprehensive security measures, including Two-Factor authentication and OAuth for authentication and secure API gateways.
Event Monitoring: Tracks every time someone accesses data, so you know who saw what and when. It can also stop people from exporting data that’s labeled as confidential.
Data Masking: The Data Mask tool hides or removes sensitive info in testing environments. This way, developers and testers don’t see private data when they’re working, keeping personal information secure.
Data Loss Prevention (DLP): Salesforce’s Hyperforce protects sensitive data within the platform.
Platform Encryption: To protect data at rest. “Most Salesforce Services offer encryption in transit by default and several allow customers to encrypt some data at rest, for example, by using Salesforce Shield.”
The Flextrack advantage: a non-modular PaaS built on Salesforce
Flextrack’s data security is backed by the global protection of Salesforce and its over $5 Billion in annual spend on data management, user experience, and platform security. With a singular view into the talent ecosystem, on-platform AI and advanced analytics, configurable workflows, Integration Studio, and a non-modular architecture, the solutions Flextrack provides are future-proofed for technology shifts and growth, enabling organizations to scale and change flexibly according to their contingent workforce needs.
Flextrack’s non-modular architecture and database connectors provide visibility to outside data with ease. On-platform reporting, powered by Tableau, provides accurate, real-time data to optimize decision-making. Plus, all data is securely stored on one platform, eliminating the need for aggregation or transfer from various modules.
As a market leader, this quantum leap in capabilities stands out starkly against legacy platforms with hard-coded workflows, rigid architecture, no analytics, and limited integration capability.
Ready to dive deeper into what a future-proof, secure VMS can do for you?
