It is possible that other similar outsourcing firms are engaged in the same fraudulent practices.

Outsourcing Firm Stealing American Money and Jobs
http://www.economyincrisis.org/articles/sh...


Satyam Computer Services, a major outsourcing firm based in India which serves hundreds of American companies, admitted to several years of snowballing accounting fraud putting Indian stock markets in an uproar and perhaps jeopardizing the existence of the firm.

While this news may be bad for Satyam employees in India and Satyam contractors in the United States; the enormous fraud perpetrated by Satyam is a stinging reproach of outsourcing in general. Satyam was able to encourage American companies – including the United States government – to use its technical services instead of other companies because of its strong asset base and sound financial policy.

As it turns out, the company had virtually no assets and was close to the brink of collapse. Satyam claimed an asset base of nearly 54 billion rupees in cash and bank loans (approximately $1.04 billion), that number was actually much closer to 3 billion rupees. Nearly 95 percent of all Satyam assets did not exist at the time they were reported. To make matters worse, the company has been audited by the World Bank, the Indian government and multinational firm Pricewaterhousecoopers for years yet no one had noticed the accumulating accounting fraud in the company.

American firms go to India and contract out work to companies like Satyam because they believe those companies are sound and present better opportunities for profit than an American technical firm. As it turns out, one of the biggest technical outsourcing companies in the world had “cooked its books” for years in order to trick American corporations – and corporations from other countries – into investing there instead of with a domestic firm.