Companies that choose to outsource work to save money may be buying themselves more legal trouble than it’s worth. That’s one conclusion from Kroll Inc.‘s annual global corporate fraud survey released Monday.
Asking if outsourcing is really worth the risk, the survey says companies often make the decision “without a thorough assessment of the risks involved in determining what is to be outsourced, and to whom.” As examples, it cites the January 2009 Satyam Computer Services case in India, when the then-fourth largest outsourcing company in the world admitted that it had inflated revenue and profits for years. The corporation was eventually sold to another Indian company.
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