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Offshore outsourcing threatens security

By Itumeleng Mogaki, ITWeb junior journalist
Johannesburg, 24 May 2006

Offshore outsourcing threatens security

There are security concerns regarding US companies that outsource their customer service to call centres in Bangalore, reports Sci-Tech-Today. 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.

According to John C McCarthy VP for research at Forrester, some outsourcing providers forgo background checks of employees and even help applicants dress up their resumes.

In one security breach last year, three former employees of MphasiS, a company providing outsourcing services, were arrested for stealing more than $350 000 from four customers of Citibank. The workers were accused of acquiring passwords and transferring money from customers` bank accounts into their own.

Nigerians train in MS for outsourcing

The Nigerian Export Promotion Council (NEXPC) has entered into a partnership with a US-based agency, Hudson Consulting Group to train Nigerians on how to tap into the ICT outsourcing global market.

This Day reports that trainees, who are to be selected especially from the IT industry, are to be trained at government`s expense in Microsoft Technical Support Analyst Certification, thereafter they will be certified by Microsoft.

NEXPC CEO Modupe Sasore says the beneficiaries will be better equipped to fit into high-paying jobs in outsourcing to support contracts from Europe, Asia, Africa and the US.

HP three-year contract with Redstone

HP Ireland has signed a three-year contract covering the transfer of an element of HP`s break-fix maintenance activity to Redstone Technology, reports Bob`s guide.

Redstone Technology will be providing support for HP`s customers within Ireland and Northern Ireland as well as providing ad hoc installation services.

Martin Balaam, Redstone CEO comments: "This is a significant contract for Redstone. It demonstrates Redstone`s service excellence when a leading world manufacturer has the confidence to outsource some of its customer support services to you."

DC`s Diebold contract terminated

ATM manufacturer Diebold is to terminate an IT outsourcing deal with Deloitte Consulting (DC) as part of an overhaul of its global technology operation.

The previous agreement, four years ago, called for DC outsourcing to deliver various IT-related services to Diebold over a seven-year period, including deployment and implementation of the Oracle ERP system across the company.

Fine Extra reports that in February, Diebold announced plans to shake up its global IT and business transformation operation after reporting a 76% decline in fourth quarter earnings.

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