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July 30, 2007

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calwatch

Generally, outsourcing isn't that great a deal, but outsourcing of any data outside the US is an extremely bad idea because US laws are powerless against those who might steal the data. You are not going to extradite people from India or Mexico who stole the medical records for blackmail or mass amounts of license data for fake licenses. You can't file charges against the crooked security guard in Bangladesh who let people walk away with information contra to security guidelines. If you have someone in West Virginia or North Dakota doing it, and the stuff leaks out, at least you can arrest the people and send them back to California to stand trial, and that arrest is recorded in the criminal database. Otherwise there are no consequences for information espionage.

http://www.wired.com/techbiz/media/news/2004/02/62356

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