What does payroll offshoring mean for my data security?
Updated 7th April 2025 | 4 min read Published 7th April 2025

When it comes to managing payroll, security is often one of the top priorities, and for good reason!
Payroll involves highly sensitive employee information, such as bank details, creating enormous pressure to keep data safe.
Understandably, the idea of outsourcing payroll processing, especially to a provider utilising offshoring, might raise some eyebrows when it comes to security.
The thought of sensitive information being managed outside your direct control can feel risky.
However, this perception doesn’t always align with reality.
The real impact of payroll offshoring on data security
When a payroll outsourcing provider utilises offshoring, it simply means that certain tasks are performed by a team located in another country.
A common misconception about payroll outsourcing providers who rely on offshoring is that there is a data security risk.
Within the industry, misguided criticisms have arisen around the risk of cyberattacks, claiming the systems used by those offshore are “less secure” and that there is a “loss of control”.
However, at IRIS, both our offshore and onshore payroll outsourcing teams use our award-winning cloud payroll software, ensuring watertight processes and data transfer.
Furthermore, when handling sensitive payroll data, all your sensitive information is also encrypted, further safeguarding it.
It’s key to remember that when payroll outsourcing providers, like IRIS, utilise offshoring, it’s still a part of their service, mirroring the same high standards.
Regarding IRIS Payroll Services, it's also worth mentioning, for added peace of mind, that our offshore teams hold the same certifications as our entire managed service offering, including:
- BACS accredited
- ISO 9001
- ISO 27001
- ISO2 7701
- ISO 14001
- ISO 22301
- HMRC Approved Payroll Software
- Cyber Essentials
- Anti-Money Laundering Compliance
IRIS Payroll Services: one unified team
By offshoring, outsourcing providers are often able to handle your payroll processes quicker and more precisely, working across different time zones to get the work done, even while you're asleep!
At IRIS Payroll Services, we use a mix of onshoring and offshoring, but it’s important to remember that all teams work together to deliver a secure, high-quality payroll service.
Our offshoring team are part of IRIS and an extension of our IRIS payroll centre of excellence, receiving the same comprehensive training and using the same industry-leading software as our onshore team.
New guide: Challenging the misconception of offshoring
At IRIS, we live and breathe payroll; one in six UK employees are paid through our broad range of payroll solutions and five million employees use our global and domestic payroll and HR solutions.
Recently, we have noticed market misconceptions about the benefits offshoring provides.
Our new guide aims to demystify concerns surrounding offshoring and outline the benefits it delivers, covering:
- What is offshoring
- Payroll security
- Service expertise
- Provider communication
- And more!
Note: all information regarding offshoring in this blog relates to IRIS Payroll Services.