Feeds

India takes on offshoring naysayers

Income and morality are not linked

The Essential Guide to IT Transformation

An ambassador for the Indian software industry has been trying to wipe up the dirt that was smeared on his compatriots last month after an HSBC call-centre worker was arrested for allegedly defrauding UK customers.

Visiting the UK last week, Nasscom (National Association of Software and Services Companies) vice president Sunil Mehta wanted to correct the perception that as Indian workers were paid less money, they were more likely to commit fraud.

"If morality was a function of income then the most rich would be the most honest," Mehta told The Register after concluding a meeting with union Amicus.

In June, an Indian worker was arrested for allegedly defrauding £233,000 from the accounts of about 20 HSBC customers. However, the Royal Bank of Scotland lost nearly 100 times that amount of money (£21m) to a man working for the bank in Edinburgh.

The story of his being jailed for 10 years broke almost simultaneously with that of the comparatively minor Indian fraud. But that was not all that was overlooked.

HSBC had insisted that its Indian centres suffered less fraud than those based in the UK. The Financial Services Authority (FSA) said British banks are more reluctant to report or prosecute their inhouse fraudsters, as doing so could tarnish their reputations.

The under-reporting of fraud of all types is "chronic" in the UK, according to the Attorney General's review of fraud published yesterday. Part of the review's remit is to determine the true extent of fraud in Britain.

According to Ernst & Young, three quarters of all fraud occurs in developed markets.

BDO Stoy Hayward said reported incidents of fraud in UK banks totalled £1bn in 2005.

Whatever the amount of unreported fraud, "mounting fraud losses" had become so problematic for Britain's financial institutions last year they decided they could no longer sweep it under the carpet, the FSA said in January.

Indian services firms, on the other hand, have had to try harder to prevent fraud. They went as far as a biometric database of employees working in the Indian offshore services industry. The Reserve Bank of India could end up vetting outsourcing arrangements.

The trade for personal data has become so rife in the UK that the government is now officially considering a two-year prison sentence for anyone caught flogging personal data.

The Department for Constitutional Affairs was forced this week, following the advice of the Information Commissioner, to open a consultation on the matter.

Few have noted this despicable irony. At least Forrester Research analyst Sudin Apte has reported that "media glare" will harm India's offshore industry, even though its outsourcing firms take more precautions to protect themselves from fraud. ®

Application security programs and practises

More from The Register

next story
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.