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?Outsourcing Thefts = Threat to the Offshore Industry?

By Synthetic ·
http://www.silicon.com/research/specialreports/offshoring/0,3800003026,39129426,00.htm

Take a gander at the URL above.
As consumers are made more aware, and get angrier with data theft, could incidents like this coupled with poor support, help to continue to undermine off-shoring sensitive IT jobs, and other that have protected information requirements? How will future legislation affect this issue? If an American company, such as one Cali, already required to report data thefts, has this happen to their customers from an outsourced operation, could the liability level the playing field against cheaper out-sourced operations?

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Legislation

by Salamander In reply to ?Outsourcing Thefts = Thr ...

We can pass all the legislation we like in the U.S., but if the data is overseas or otherwise across our borders, legislation doesn't do us much good.

Something I'd like to see addressed is the length of time that companies can retain sensitive information. I'm sure that there are many businesses that keep data for years, just because it's convenient to do so, rather than destroy it at regular intervals, which might mitigate some risk.

I'd also suggest that there needs to be some consumer backlash. However, I think most people are complacent enough not to do so. Case in point: a retailer that has outlets in my city has admitted that over one million of its' customers' information was stolen. Drove by there yesterday: the parking lot is packed with shoppers. Amazing.

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I think they wanted to get on TV

by Tony Hopkinson In reply to ?Outsourcing Thefts = Thr ...

India's Dumbest Criminals
The only difference siting the call centre in the US would have made is the employess would have had an IQ of over 30.
Saying that I bet these fellas were lifing small amounts of money successfully, and then got greedy when no one noticed.

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Just my 2 cents

by anykey??? In reply to ?Outsourcing Thefts = Thr ...

I heard last night that a retailer in this area lost info on approx. 1.5 MILLION customers.
Then I see a company spokesperson say that its the comsumers duty to contact the credit reporting bureaus to have them keep an eye on their account.
BS you lost my info you fix it.....
I dont care if that involves trillions of dollars to be spent by companies that have this happen, they screwed the pooch they clean it up, and make sure my credit is as crappy after the leak as it was befor it happened.
I garuntee that if they hemmorage enough cash because of a security breach they will get it fixed to keep the bottom line looking good

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by Synthetic In reply to Just my 2 cents

I would rather see the people who make policy, and those who run and sell our data loose all of theirs to data thieves. I would like to see them have to get new SSN, spend years and thousands trying to clear their name, have their credit ruined. Then we would see change.

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I agree that...

by anykey??? In reply to

someone other than the consumer needs to feel the pain of these situations.

The problem seems to be that personal data
collection is a huge business. Which would allow the heads of these companies to lose their indentities a couple of times without much pain to their pocket book.

Case in point, I heard that Choicepoint has at least 1 piece of info on every single adult in the U.S. Why? money baby it's all about the money.

Rule Number 1 needs to outlaw these databases of personal information that companies keep, If it's not a current employee of the company you don't need it.

Rule Number 2 any entity other than the goverment that claims they need you SSN should be blown off the face of the planet post haste.

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by jbaker In reply to ?Outsourcing Thefts = Thr ...

Obviously, the bank will not admit that they made a mistake, saying that their security procedures are "adequate". I agree that legislation will not work when dealing with outsourcing across national borders. I do think, however, that the companies need to be completely liable for any loss caused by their contractors overseas.

This outsourcing thing is cyclical. they tried it once before about 15 years ago, and it did not work. It is working better this time, but in the long run, the costs of doing business overseas, and the lack of end-user support will be the death of at least certain types of outsourcing.

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