FDIC Warns of Pitfalls in Shifting Key Functions to Foreign Firms
July 5, 2006
Financial institutions that are outsourcing portions of their operations to foreign-based service providers should be aware not only of its benefits but also of its risk, according to a new federal guidance on outsourcing. Issued by the Federal Deposit Insurance Corp., the guidance discusses the various risks faced by mortgage lenders and other credit providers when they place their technology, data processing, and call centers in the hands of foreign-based service providers. …