Thursday, October 14, 2004

Outsource firm sues in India


ALLEGED CODE THEFT HIGHLIGHTS FOREIGN RISK

In a case that exposes the intellectual-property risks of outsourcing in India, a small San Carlos software company has sued Mumbai police for refusing to investigate the alleged theft of proprietary source code by an employee at its Indian subsidiary.

Sandeep Jolly, the founder and chief executive of Jolly Technologies, said U.S. technology companies should beware of the risks of doing business in his native land at a time when many are taking advantage of the cost savings of offshoring and entrusting sensitive software development and testing work to Indian contractors. Protection of intellectual property is still a new concept for lawmakers, police and prosecutors, he said.


Complete story here.

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