Outsourcing and the agency problem

World Bank bans India outsourcer Satyam for 8 years • The Register

he World Bank has barred India’s Satyam Computer Services – the aid institution’s largest software vendor and India’s fourth-largest outsourcing company – from doing business with it for eight years.

On Tuesday, World Bank confirmed earlier reports of the ban in a statement that said Satyam had provided “improper benefits” to bank staff and failed to “maintain documentation to support fees charged for its subcontractors.”

Every time there’s a change in employment patterns, someone is in a position to profit from it. I wouldn’t be surprised if we uncover a lot more deals like this as the economy goes south.

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