Security Manager's Journal: A deal that's too good to be true

Offshore coding vendor offers a great price for quality work, but it may be stealing the company's source code.
 
My company is always looking for ways to save money. One maneuver -- outsourcing the development of a module of one of our software products -- almost cost us big time.
 
We had chosen a provider in Southeast Asia, based not just on its extremely low cost but also on the quality of work we'd seen it deliver in the past, which was far superior to that of other low-cost, offshore locations. Recently, we decided to decrease the number of engineers working on the project, and the vendor ended up laying off one of the removed engineers. That laid-off engineer let us know that the vendor was using our source code to create a competing product. He either wouldn't or couldn't tell us many details, but he did say that our source code was being copied to USB drives to avoid detection and then being shared within the vendor company.
 
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