Outsourcing is not always safe

In this economy, companies are looking to save money in any way that they can. One of the most common ideas is outsourcing certain business processes to other companies overseas, such as IT, payroll, etc. Fortune 500 companies such as GE have turned to companies in India to cut costs in these business processes. In turn, these companies have become quite hated by IT professionals as well as disgruntled users who struggle to understand customer service reps who don't speak English clearly.

Karma was definitely in play as one of India's largest IT sourcing firms was rocked by scandal in that it admitted to falsifying over 1 Billion dollars in cash reserves during the last several years. Their whole business was like an Enron in that it was built on funny accounting. GE and other companies here in the USA happen to be clients of this company, which has to a bit funny to any IT worker who has been displaced by companies such as this. Right now, their stock is down about 90% as the analysis of what is real and what is fake starts to begin.

Just because you can save a few dollars doesn't mean that there are not notable risks in giving parts of your business to companies overseas.

For more information, read the article on the BBC at http://news.bbc.co.uk/2/hi/business/7815031.stm.