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Outsourcing service left Scottrade Bank customer data exposed

Business process outsourcing (BPO) service provider Genpact left customer information at Scottrade Bank vulnerable through a cloud server that did not have the right level of security.

According to Scottrade Bank, information about 20,000 people and businesses in its small business-to-business (B2B) unit was not fully secured.

Genpact has admitted the mistake and secured the information  as soon as it was alerted and discovered the origin of the error.

“Genpact works exclusively with the B2B bank unit and has no access to any other information at our firm,” said Scottrade in a statement. “This appears to be a case of isolated human error by the supplier in handling the dataset.

“It is important to note that we hold all of our third-party suppliers to rigorous information security standards. The supplier has acknowledged responsibility for this incident. This is a discrete issue with no link to any other aspect of our business. Our own systems remain secure and were not involved in this matter.”

Genpact is currently trying to find out whether the data was accessed and has hired a forensics firm to help it.

The case fires a warning to enterprises to be prepared to deal with problems caused by service providers.

In the UK, the Information Commissioner’s Office can impose a maximum fine of £500,000. In October 2015, TalkTalk was hit with a record £400,000 fine over the cyber attack in 2015 that exposed personal details of more than 150,000 customers. But the reputational damage for businesses can be far greater.

This is a particularly important issue for UK companies, which are highly dependent on BPO and IT service providers, yet may be unprepared for disruption caused by supplier mistakes.

According to research from Deloitte, 80% of UK businesses are very dependent on services from outsourcing providers. The same research found that one-third of businesses in the UK have  experienced major disruption or complete failure due to the actions of an outsourced service provider in the past three years, but also revealed that only 11% were prepared for this.

It is essential to ensure cloud contracts protect the customer’s business against data loss. Talking to Computer Weekly in February, outsourcing consultant Bob Fawthrop cited a case he was involved in where a cloud-based financial transaction supplier that was going to move data from one system to another would not take responsibility for data loss, despite the fact that it was moving the data.

Article source: http://www.computerweekly.com/news/450416537/Outsourcing-service-left-Scottrade-Bank-customer-data-exposed

UK outsourcing deals extended because of Brexit workload

UK outsourcing deals extended because of Brexit workload

Article source: https://www.ft.com/content/fa80d526-1b7a-11e7-a266-12672483791a

DailyTimes | Pakistan yet to be recognised as global outsourcing …

KARACHI: Pakistan is yet to make its name as a global outsourcing location and hence is not reaping many benefits from the global Information and Communication Technology (ICT) value chain while Pakistan Software Export Board (PSEB) need to facilitate interests of global IT Players in establishing business linkages with local IT houses.

This was stated by Ministry of Information Technology and Telecom (MoIT) on Saturday in Digital Pakistan Policy 2017.

IT industry’s global technology players are needed to not only outsource their development work to Pakistan but also to incubate or invest in Pakistani start-ups to create viable and profitable businesses and help steer the IT sector to the next level.

Increased and improved promotion of the Pakistan’s IT industry, products and services in the local and international markets is essential, it added.

Weak enforcement of judicial system regarding Intellectual Property Rights (IPR) protection, consumer rights and arbitration procedures including inventions, software code/solutions, trademarks, designs, literary works, and trade secrets etc is key issue. Existing legal framework for the protection of IPR, for both foreign and domestic business/trade needs to be further strengthened. Enforcement measures are needed to ensure proper implementation of the existing laws to control the software piracy and to assure the protection of intellectual property rights of both foreign and local software, said the policy. To adequately address and improve the international rankings in governance, entrepreneurship, knowledge capital, accessibility, demand stimulation and ICT skills, the IT policy focuses on four broad areas for implementing the policy imperatives which include sectoral digitization, cross-sector collaboration, IT sector sustainability, entrepreneurship and innovation.

The MoIT will develop an ‘Action Plan’ along with relevant ministries and departments detailing the time frame and outputs. MoIT will play the role of an enabler and facilitator, providing necessary guidance where required while other federal ministries, divisions and departments will take the lead role for the implementation of policy strategy falling within their domain.

MoIT said that Digital Pakistan Policy will serve as the foundation pillar for the construction of a holistic digital ecosystem in the country with advanced concepts and components for the rapid delivery of next generation digital services, applications and content.

Pakistan’s IT industry also needs to cover unique sales propositions in niche markets to enhance revenue generation. In addition to the digitization of key socio-economic sectors, a multi-channel e-government platform is required to increase the quality and reach of public services stimulating demand for e-services, applications and content.

3G/4G mobile spectrum auction of 2014 has boosted broadband mobile internet penetration, increased smart phone usage, generated demand for relevant digital services and applications, and accelerated the digitization of government and all sectors of socio-economic development. MoIT also outlined the departments and ministers that will responsible for achieving the goals set in the policy. For implementation of the Digital Pakistan Policy, various ministries and departments would be involved, it added.

Article source: http://dailytimes.com.pk/business/09-Apr-17/pakistan-yet-to-be-recognised-as-global-outsourcing-location

SEI assets climb 25% on ‘second wave of outsourcing’ – Citywire

SEI’s client assets rose 25% in 2016 due to what it described as a ‘second wave’ of outsourcing.

‘It is an interesting time now with a lot of clients now coming to us with the idea of outsourcing,’ said SEI commercial director Martin Steer (pictured).

‘It is the second wave of outsourcer really, so people who previously said they would never outsource are actually coming to us.’

Client assets hit £31.6 billion at year end, the group said in its full-year update, up from £25.2 billion in 2015. Steer highlighted the majority of the £6 billion increase was gained from existing clients.  

‘You [previously] had the first period of firms that were willing to outsource.

‘Firms who were not part of that waited to see if it was successful, but over the last few years, lots of things have changed in the marketplace be it the cost of regulation, the general cost of running a platform, and the technology advances.

‘So a lot of those firms are seeing that their added value is to deal with their clients and choose the investments for those clients—not with the back office systems and regulation.’

Net flows into the firm’s UK private banking business, headed up by former cover star Brett Williams, rose by 21%.

Steer added the firm expects to see another £2 billion added to the books in Q2 with the as a result of its partnership with WH Ireland. 

In 2016 SEI also added start-ups Netwealth and Munnypot to its client base and extended contracts with Danske Bank and Veritas Investment Management.

‘Our pipeline of new business remains very strong and we expect to announce additional partnerships in the coming months.’

Article source: http://citywire.co.uk/wealth-manager/news/sei-assets-climb-25-on-second-wave-of-outsourcing/a1003873

Sen. Francis Says Home Depot And Others Outsourcing Work While Ending Contracts With Local Providers

Senator Novelle Francis in a press release issued Friday, said he has learned that companies such as Home Depot were choosing to outsource work to companies based outside the territory, while ending contract with local providers. The senator expressed frustration that these companies were apparently not subject to the same level of scrutiny as local firms.

Mr. Francis said he learned last week that Home Depot and other businesses were increasingly outsourcing their services to companies based in Puerto Rico. He did not reveal how or where he received the information, but lawmakers sometimes have access to details not readily available to the public.

“Our local companies, which provide jobs and contribute to our tax base, are disadvantaged by companies that receive benefits but are not subject to the same fees, taxes or licensure requirements,” he said. “Historically, when these outside companies are chosen to carry out these services, they take the lion’s share of the money back to their community. This increases their employment, their tax revenue and the overall economic state of their community while the Virgin Islands continues to suffer.”

The senator called on the Departments of Labor and Licensing and Consumer Affairs to make sure that all companies doing business in the territory are duly licensed and in compliance with local laws.

“We have to level the playing field to ensure that our local companies, who have a vested interest in this community, always receive their fair share of the pie so that they can reinvest in their families and support our local vendors and keep the money circulating in our community,” he said. “When we put these issues in the light, they are corrected for a time, then they resurface with another company. I will continue to champion this cause because I believe that if unfair practices are unaddressed, we will not certainly not achieve the economic parity that our local business owners deserve.”

Article source: http://viconsortium.com/virgin-islands-2/sen-francis-says-home-depot-and-others-outsourcing-work-while-ending-contracts-with-local-providers/