Domestic Sourcing

Domestic sourcing refers to the practice of procuring goods, services, or raw materials from suppliers located within one's own country. In the context of the United States, this is often referred to as US sourcing or onshore procurement. This approach contrasts with international sourcing, where businesses look beyond national borders to fulfill their supply chain needs.

Understanding Domestic Sourcing in OT/IT Cybersecurity

In the realm of Operational Technology (OT) and Information Technology (IT) cybersecurity, domestic sourcing involves obtaining hardware, software, and services from providers based in the United States. This practice is particularly significant in sectors dealing with critical infrastructure, such as energy, transportation, and manufacturing, where the integrity and security of supply chains are paramount.

The emphasis on domestic sourcing in cybersecurity is driven by concerns over data privacy, supply chain security, and compliance with national regulations. By sourcing domestically, organizations can often mitigate risks associated with foreign interference or vulnerabilities that could be introduced through international supply chains.

Importance for Industrial, Manufacturing, and Critical Environments

In industrial and manufacturing settings, where systems are often part of critical infrastructure, ensuring the security and reliability of components is crucial. Domestic sourcing can help companies meet stringent compliance requirements such as those outlined in NIST SP 800-171, which provides guidelines for protecting controlled unclassified information in non-federal systems, and the Cybersecurity Maturity Model Certification (CMMC) framework, which mandates cybersecurity practices for defense contractors within the United States.

Additionally, the NIS2 Directive in Europe places emphasis on securing supply chains, which by extension can influence the practices of US companies that interact with European partners. While IEC 62443 provides global standards for industrial cybersecurity, domestic sourcing can help ensure compliance by simplifying the verification of supply chain integrity and component origin.

Practical Examples

Manufacturing and Defense: A US-based defense contractor might choose US-sourced components to comply with CMMC requirements and ensure that all elements of their supply chain are secure and reliable. This not only aids in meeting regulatory requirements but also in building trust with government clients.
Energy Sector: Energy companies often rely on domestic sourcing for critical components used in grid management to prevent foreign adversaries from exploiting vulnerabilities in the supply chain. This is particularly relevant in maintaining national security and operational integrity.
Healthcare: With increasing cyber threats targeting healthcare infrastructure, hospitals might source IT infrastructure domestically to ensure compliance with federal regulations and protect sensitive patient data from breaches.

Why It Matters

Domestic sourcing reduces exposure to international risks, such as geopolitical tensions, trade restrictions, and variability in international law. By securing the supply chain within national borders, companies can ensure greater control over quality, security, and compliance. This is critical for maintaining the operational integrity of systems that support essential services and infrastructure.

Benefits:

Enhanced Security: Reduces the risk of foreign interference and cyber threats.
Regulatory Compliance: Simplifies adherence to national and international cybersecurity standards.
Supply Chain Reliability: Minimizes the impact of global supply chain disruptions.