The Security Implications of Outsourcing

By | May 16, 2006

Dozens of major U.S. companies outsource their customer service to call centers in Bangalore, India. Low labor costs and an abundance of workers have translated into big returns for businesses that look offshore for technical support, telemarketing, payroll accounting, and credit-card processing.

But growing concerns are slowing down interest in such practices, according to a recent survey by Forrester Research. Last year, companies including Bank of America, ChoicePoint, Citibank, and Time Warner experienced the loss of customer information or have reported intrusions into their data banks.

As a result of growing concerns over security at foreign call centers, U.S. companies that engage in so-called business-process outsourcing, or BPO, continue to wrestle with the ultimate question about shipping services overseas: Is it worth the risk?Read Full Story

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