Outsourcing can mean many things.  Most people when they think of outsourcing, think of all of the jobs that have gone overseas to China and India.  Talking to a customer service representative located oversees has been  a frustrating experience for most people.

Using US companies to perform work is also common just not as high profile.  Shell was using a third party agency to conduct a data indexing project for the company, when one of the employees of the contracted agency, swiped the information of several current and former Shell employees.

According to Shell, the third party employee used the social security numbers of four Shell employees to file for unemployment benefits.  Once Shell discovered the misuse of employee information, the company investigated the source of the unemployment filings. 

After tracing the source of the applications to the third party vendor, the vendor fired the employee and Shell fired the vendor.  Like most companies that outsource work, Shell requires all contract employers and outside vendors to sign confidentiality agreements before allowing them to start work.  Shell also runs background checks on all contract workers.

Even with all of the security checks and confidentiality agreements, Shell’s security was breached.  Ongoing investigations are being conducted by the Texas Workforce Commission (TWC) and Harris County law enforcement.

Not all outsourcing locally or globally leads to security breaches and most companies that provide specialty services in outsourcing situations, do extensive background checks and security checks on their employees.  As is true everywhere, all it takes is one person to destroy the credibility of a company, and to do damage to another.

Security in this age of high tech access to information is difficult and requires ongoing review of policies and procedures set in place.  Shell reviews all of its security methods, policies, and procedures on a regular basis, so negligence on the companies part does not appear to be a factor. 

Outsourcing while convenient, is just one more way that security can and is breached within governments and companies.  Both governments and companies frequently need to hire outside workers/agencies when short term projects arise or specialty needs occur.  Much of the time, the contract job is a one time data input, indexing or analysis project and the hired workers/agency have/has expertise in the area or simply can provide the manpower needed in the short term.

Being proactive and having the best security practices and policies in place is the only way to limit security breaches.  Regular review and updates are necessary.  Security is not a onetime fix but an ongoing issue.

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Entry was posted on Monday, October 6th, 2008 at 1:34 pm under Crime, Security, Technology.

Read more entries by Susan Wilson.
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