The globalisation of IT outsourcing means that a growing number of businesses do not know where their outsourced services are being carried out, it has been claimed.

A process of “silent offshoring” is taking place as the outsourcing industry matures.

Just like any other business, outsourcing firms can save money by transferring functions to low-cost overseas locations, and while this can mean benefits for clients in terms of out-of -hours management, it can also be troublesome.

“Most vendors have moved a myriad of operational functions to the far corners of the globe, often with minimal fanfare, if any,” Adam Strichman, senior partner of Nautilus Advisors, told CIO magazine.

Client rights regarding where outsourced services are carried out are not stipulated in many older contracts, Mr Strichman pointed out, as the scope of the industry had not been anticipated, and he urged those concerned about this issue to bring it up in contract negotiations.