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April 22, 2005

Theft by Outsourcing Firm Employees Requires Close Investigation

Last week, The Outsourcing Times reported on a major looting of US Citibank customers undertaken by employees of an Indian outsourcing firm.  The move caused the expected response by those with protectionist tendancies, that the robbery signaled deep uncontrollable security concerns associated with information outsourcing.  This week, pro-outsourcers are presenting the case that the move was little more than a single isolated incident and that it does not undermine the larger trend towards information outsourcing.  Leading the charge is Gartner who late last week released a statment indicating that the event will not play a major role in deterring information outsourcing. While Gartner is probably right, and this one relatively small robbery will not likely affect the broader information outsourcing industry, it fails to address some of the very real concerns that the anti-outsourcers raise.  An honest and thorough investigation into the event and the security failures which allowed it, should conducted, to ensure a successful industry for the future.  Silicon.com Reports:

"We do not believe that this highly publicised incident will seriously damage the Indian business process outsourcing (BPO) industry. Frauds of this type can happen anywhere, and are just as likely to occur in an insourced or captive centre."

Read More: Call centre theft won't hurt Indian outsourcing

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