India Outsourcing Industry Takes Steps to Combat Fraud

The AP reports that the work histories will be kept by National Securities Depository Ltd., a government-mandated electronic depository.   Participation by workers will be voluntary, but companies may start requiring participation as a prerequisite for employment.

Many companies in the US outsource functions such as telemarketing, handling customer calls, payroll accounting, and credit card processing to countries such as India due to an abundance of skilled workers and low wages, the AP reports.   India accounts for 44% of the revenues generated by the outsourcing business.

Instances of data theft and fraud have been of concern.   The AP cites one case where three workers of a firm hired by Citibank were accused with helping cheat four Citibank customers out of $350,000.

In a separate effort to prevent fraud, a group appointed by the Indian government has finalized its recommendations to tighten India’s data protection laws.   The AP reports that one recommendation would make it easier to prosecute anyone who buys or sells outsourced data illegally.