Do service providers pose a security risk?

Friday, 22 October 2004, 12:22 AM EST

Although IT security standards at some offshore development centers may seem shoddy, one Canadian outsourcing service provider says that shouldn't deter North American companies from handing off work to reputable companies in Canada or overseas -- as long as they do their homework first.

Police officials recently confirmed they are investigating the alleged theft of source code at Jolly Technologies' Mumbai development center in India. Jolly, a San Carlos, Calif.-based label and photo ID card creator and print software vendor, lacked a security policy at its Mumbai center, and the company issued a statement this summer confirming that an employee uploaded and e-mailed files containing the source code and other confidential data to a Yahoo Inc. e-mail account.

By Patricia Pickett at Computerworld.

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