The topic is really very interesting ! Outsourcing involves cross-border transfers of indeterminately large proportions of a client's proprietary and confidential information assets. There are several companies from developing countries is contracting with financial institutions, hospitals, and insurance companies to do their back office jobs. In most cases these companies deal with sensitive informations, such as medical data, payroll information, financial informations and so on. The outsourcing companies understand that there is a time zone difference and they like to take advantage of this. Also, they provide the services at a comparatively lower cost. There are several advantages, if any company goes for outsourcing....the company will not have to invest any capital in getting the latest technology and talent in the industry and this means a lot of savings for the said company. The company can keep a check on the status of the work and be in touch with the outsourcing companies to ensure that the work will be completed on time. But there are some risks for outsourcing. You can not make a police checks for your work to the outsourcing companies.
One of the most risky thing is, suppose, a person who applied to a company (say ABCD company) for a job and some reasons the company rejected him/her. Now the company contacts to a outsourcing company (say XYZ) for its outsourcing jobs and the deal is done. Up to this fine, But.... if the same person who rejected earlier from ABCD company, now works for the same outsourcing company i.e. XYZ company. Then what will be the situation ! That person may become harmful to ABCD company with its important information. But the companies may take some precautions to avoid risks to the some extent.
Before deal with outsourcing companies, check for criminal background and if possible also for credits. There is lack of information risk if a company doesn't arrange an interview with outsourcing company, and try to extract information as much as possible and not only that, make arrange for an unscheduled official visit to the outsourcing company to know how of their man power or their infrastructure specially if the outsourcing company is doing a help desk call center then this is a must. Don't trust on the outsourcing company's references, try to gather information from the companies which already made a deal with the outsourcing company and if possible check by person. Give priority If the outsourcing company does not have a local call center, try out to find where is it located. This is specially taken care in case of USA jobs to Asia. If this is done, the outsourcing company may send wrong message to the customers and employees of the actual company.