By Albert Barsocchini
December 11, 2009
The growing risk of fraud and IP theft in outsourcing is a real concern to companies trying to protect valuable intellectual property. Companies often make the decision without a thorough assessment of the risks involved in determining what is to be outsourced, and to whom. A recent Kroll 2009 Global Fraud Report is a sobering look at the risk of outsourcing. The report noted a significant increase in IP fraud and theft when outsourcing.
Companies are looking at ways to minimize this risk by being more proactive in protecting ESI that leaves there firewall by culling and processing the data before transfer to third parties. An additional concern for attorneys is there ethical and legal obligation to zealously protect client confidences and secrets. That is very hard to do when a third party vendor is both collecting and processing the ESI before an attorney can even review it.