Misplaced Pages

VFS Global: Difference between revisions

Article snapshot taken from Wikipedia with creative commons attribution-sharealike license. Give it a read and then ask your questions in the chat. We can research this topic together.
Browse history interactively← Previous editContent deleted Content addedVisualWikitext
Revision as of 08:46, 1 February 2009 editSmoothtie (talk | contribs)15 edits Corrected error in tagging← Previous edit Latest revision as of 07:56, 23 October 2024 edit undoFlask (talk | contribs)Extended confirmed users5,573 edits Rewrite of several sentences in lead section to address concerns by StellarVoyager about redundancy. Note that, per WP:LEAD, "the lead should... summarize the most important points, including any prominent controversies." 
(552 intermediate revisions by more than 100 users not shown)
Line 1: Line 1:
{{short description|Outsourcing services company}}
{{Infobox Company
{{Use dmy dates|date=July 2017}}
| name = VFS Global (VFS Global Services Pvt. Ltd.)
{{Infobox company
| image = ]
| name = VFS Global
| company_type = ]
| logo = VFS Global Logo.png
| foundation = ]
| type = Private company
| location = ] Mumbai, India
| location = ], United Arab Emirates
| Industry = ] Company
| foundation = ], Maharashtra, India ({{Start date|df=yes|2001|07}})
| Specialization = Consular Services Facilitation Company
| area_served = Worldwide
| homepage = http://www.vfsglobal.com
| key_people = {{plainlist| * Zubin Karkaria (Founder & CEO)
* Dhiren Savla (CIO)
* Bernard Martyris (CCO)
* Jiten Vyas (CCO)}}
| parent = ]
| num_employees = 8960 (as on 30 November 2022){{sfn|VFS Global: Milestones|2022}}
| website =
}}
'''VFS Global''' is a ] and passport administration ] company for governments and ]s.{{sfn|''Times of India''|2024}} Zubin Karkaria founded the company in 2001 while he was chief executive at ].{{sfn|Gibbs|2019}} Formerly based in India, the company is now headquartered in ] with offices in 147 countries.{{sfn|Gibbs|2019}} In 2018, VFS processed approximately 25 million visa applications, often containing passport details and financial histories, on behalf of the ] and 61 other governments.{{sfn|Gibbs|2019}}


Over the past two decades, VFS Global has faced criticism for alleged exploitative practices, lack of transparency, and data security failures.{{sfnm|Baker|2009|Goodin|2007|Shifrin|2007|Gibbs|2019}}{{sfnm|Goodin|2007|Chauke|2019|''Xinhua''|2019|Gibbs|2019}}{{sfn|Bulman|Gibbs|2019}} Visa applicants from lower-income countries have reported missed flights and wrongful denials due to delays and errors, including failure to scan key documents.{{sfn|Bulman|Gibbs|2019}}
==Historical Overview==


== History ==
VFS Global is the consular services facilitation company. The company was established in the year 2001 as a specialist ] (BPO) agency, exclusively dedicated and focused to serve ] and immigration authorities to facilitate the visa application procedures across the world.
=== Origins and revenue model ===
Founder Zubin Karkaria conceived the idea for VFS Global while working with the ].{{sfn|Gibbs|2019}} Karkaria believed one could circumvent embassy's wait times required for processing visa applications by outsourcing the administrative work.{{sfn|Nsehe|2018}} He soon "persuaded the US government to pilot a scheme for Indian visa applicants to the US at its Mumbai embassy".{{sfn|Gibbs|2019}} The company opened its first visa processing centre in ] that same year.{{sfn|Nsehe|2018}} In 2003, the company acquired a ] contract to process visa applications from India.{{sfn|Bulman|Gibbs|2019}}
], India]]
By 2007, the company had obtained its first global account from ] for operations in 33 countries. Within one year of gaining its account, the company's image was tarnished by a data breach which exposed the sensitive information of UK visa applicants.{{sfn|Ballard|2007}}{{sfn|Shifrin|2007}} Despite recurrent data breaches,{{sfnm|Ballard|2007|Baker|2009|Dehghan|2015}} the company later obtained a major contract with the United Kingdom to administer the majority of the UK's visa applications.{{sfn|Gibbs|2019}} The contract was a significant change in how visa applicants to the ] were charged to have their applications processed.{{sfn|Bulman|Gibbs|2019}}


The company's growth was primarily due to its revenues from service fees paid directly by visa applicants. In 2009, financial records indicated that VFS Global's parent company at the time, VF Worldwide Holdings, was an ] in ], an African tax haven.{{sfn|Gibbs|2019}}{{sfn|Bulman|Gibbs|2019}}
This organization initially started its operations in Mumbai, India to serve the interests of ] in India, when the embassy was not able to handle the crowds outside the embassy. Today, the company has grown to become a leading global player <ref> Global player</ref> in this niche spectrum of business.
VFS Global focuses on serving consular sections of diplomatic missions <ref>.com/images/Business%20India_Nov08.pdf] Visa Processing Outsouce</ref> by providing administrative support. They manage non-judgmental tasks related to the entire lifecycle of a visa application process, thereby enabling the missions to focus on the key tasks of assessment and decision making.
VFS provides a gamut of services like dedicated visa application centres and websites <ref> Dedicated Websites</ref> ; joint visa application centres <ref> Joint Visa Application Centres</ref> ; biometrics facility <ref> Biometrics Facility</ref> , waiting lounges, online appointment scheduling facilities <ref> Online Appoitment Scheduling</ref> , courier pick up and delivery services.


=== Expansion and growth ===
The company provides consular services in many countries like ], ], ], ], ], ], ], ], ], ], ], ], etc for people applying for travel permission to countries like USA, UK, India, Canada, France, Belgium, Australia, UAE, Italy and many more.
In August 2017, the VFS Global acquired the UK-based visa service provider TT Services (TTS) for an undisclosed amount.{{sfn|Saurabh|2017}} At the time of the acquisition, TTS operated 51 visa application centres in over 35 countries with 216 employees.{{sfn|Saurabh|2017}} Later that year, in November, VFS Global expanded its visa services in ] with new centres launched in the additional cities of ], ], ], and ].{{sfn|Srivastava|2017}}


In January 2019, the parent company of VFS Global, EQT AB, declared their intention to sell the company.{{sfn|Schuetze|Hirt|2019}} In August 2019, an in-depth financial investigation by the British newspaper '']'' revealed that VFS Global had experienced exponential growth in recent years and its shareholders extracted £567m through "distribution to owner" payments and inter-company loan write-offs.{{sfn|Gibbs|2019}} This growth has been attributed to the company's "exploitative" business practices.{{sfn|Bulman|Gibbs|2019}}
In early 2007, VFS Global was awarded contract by the UKBA <ref> UKBA Contract</ref> worth £ 195 million (spread over 5 years) to provide visa outsourcing services in 7 geographical regions, covering close to about 70% of UKBA visa applications globally. VFS Global is also the first Indian company to be awarded contracts for visa outsourcing services by the Government of India. As on date, VFS Global has been awarded contracts to provide outsource service to the Indian Embassy's at France <ref> Indian Visa in France</ref>, Thailand, China, Saudi Arabia, and the Indian High Commissions in Sri Lanka, Australia, United Kingdom, Switzerland, and Canada.
VFS Global serves the interest of 26 diplomatic missions in 42 countries worldwide. On behalf of its clients <ref> Client Missions</ref> VFS Global handles over seven million applications (contracted) every year through its ISO certified <ref> ISO Certified </ref> offices.


In October 2021, Blackstone acquired a majority stake in VFS Global. Kuoni and Hugentobler Foundation remains a minority stakeholder.{{sfn|''Times of India''|2021}} Prior to October 2021, the company was owned by a ] and, as VF Worldwide Holdings, is incorporated in the African tax haven of ].{{sfn|Gibbs|2019}} Investors in the company include the ] and ] investment authorities, the Ohio Police & Fire Pension Fund, and ].{{sfn|Gibbs|2019}}
==Awards & Recognitions==
In 2008, VFS Global won Microsoft Security Strategist Award <ref>Microsoft Security Strategist Award</ref> for outstanding leadership in information security (IS)<ref> Information Security</ref>.


== Criticism and controversies ==
In 2009, VFS Global won award at the Lean Six Sigma and Process Improvement Summit 2009 <ref> Six Sigma & Process Improvement Awards<ref>,– The Americas in the “Best Process Improvement in Services & Transactions” Category.
Throughout its existence during the past two decades, VFS Global has attracted considerable criticism from governments, investigative journalists, and its clients.{{sfnm|Goodin|2007|Shifrin|2007|Baker|2009}} The company allegedly pressured visa applicants into purchasing premium services such as premium lounges.{{sfn|Gibbs|2019}}{{sfn|Bulman|Gibbs|2019}} In 2019, the British Home Office was deluged by complaints from customers applying for visas using VFS Global,{{sfn|Bulman|Gibbs|2019}} many of whom accused the company of "exploiting vulnerable applicants for profit."{{sfn|Bulman|Gibbs|2019}} The majority of these applicants were from lower-income countries, and they "missed flights and were wrongly denied visas due to delays and administrative errors, including apparent failure to scan vital documents."{{sfn|Bulman|Gibbs|2019}}


== Notes & References == === Data breaches ===
==== Initial breach and inaction ====
{{reflist}}
Between 2005 and 2007, a security flaw in the VFS Global application website for the British ] resulted in many visa applications from India, Nigeria and Russia being publicly accessible.{{sfn|Ballard|2007}} Sensitive data stored in VFS's online service could be accessed by simply altering the VFS website's ] address.{{sfn|Ballard|2007}} By doing so, anyone could access the company's visa applicant database including their "stored passport numbers, names, addresses, and travel details."{{sfn|Ballard|2007}} Although the security flaw had been known since December 2005,{{sfn|Baker|2009}}{{sfn|Ballard|2007}} VFS Global addressed the issue only after media reports in May 2007.{{sfn|Ballard|2007}}


==== UK government investigation ====
==External links==
Following this data breach and media outcry,{{sfn|Shifrin|2007}} the UK Secretary of State for Foreign and Commonwealth Affairs appointed an independent investigator to uncover the reasons for the breach of security in the VFS online visa application website.{{sfn|Baker|2009}} The subsequent July 2007 report highlighted many failures by VFS,{{sfn|Baker|2009}}{{sfn|Goodin|2007}}{{sfn|Shifrin|2007}} including that VFS had failed to protect personal data to the levels expected by the UK Data Protection Act.{{sfn|Baker|2009}} The report recommended that the VFS online visa applications not be resumed for applications from India.{{sfn|Baker|2009}}
*


In November 2007, the UK ] announced that it had found the ]'s contractual relationship with VFS Global to be in breach of its obligations under the ]. The ] required the Foreign Office to sign a statement that it would comply with the ] and would not reopen the VFS UK visa online facility.{{sfn|Information Commissioner's Office|2007}} As a result of this ruling, the Foreign Office reviewed its relationship with the organization and briefly sought to significantly reduce its outsourced work, especially in the IT industry.{{sfn|Johnson|2007}}
]

]
Following this incident, several governments criticized VFS Global's abilities and porous security protocols.{{sfn|Taylor|2008}} "There's the accountability issue, the privacy issue and why are we outsourcing to a for-profit entity something that belongs in the security mandate?" asked Victor Wong, executive director of the ].{{sfn|Taylor|2008}} Likewise, Liam Clifford, an immigration expert working for ''Global Visas'', raised security concerns associated with VFS Global's operations: "Once you put this work in the hands of private companies overseas, you no longer have the same protection."{{sfn|Taylor|2008}}{{sfn|Harper|Leapman|2007}}
]

==== 2015 data breaches ====
VFS Global's data security again came under scrutiny in July 2015 when its online visa forms for Italy allowed any user to access the personal information of other applicants—including their date of birth, passport details and addresses—if they input the ID number of another person when logging into the system.{{sfn|Dehghan|2015}}

=== Monopoly allegations ===
VFS Global has been alleged to be a ] enterprise operating in the visa outsourcing sector.{{sfnm|''Travel News Weekly''|2019|Chauke|2019|''Xinhua''|2019}} Its alleged monopoly has led to issues related to prohibitive visa application prices and also sparked concerns in the areas of centralised document handling and content security.{{sfnm|''Travel News Weekly''|2019|Chauke|2019|''Xinhua''|2019}}

In June 2014, the South African Competition Commission investigated the company regarding allegations of market dominance in the visa support services market to foreign embassies.{{sfn|Donnelly|2014}} The Commission recommended further investigations into the company.{{sfn|Donnelly|2014}} In a statement to ] parliament in July 2018, VFS Global denied that their company operates as a monopoly,{{sfn|European Parliament|2018}} though its prepared statement did not cite any outsourcing companies with whom they are in competition for winning contracts.{{sfn|European Parliament|2018}}

=== Extortion allegations ===
In 2019, the Nigerian government's Portfolio Committee on Home Affairs accused VFS Global of "extorting" and "mistreating" vulnerable visa applicants in developing countries such as Nigeria.{{sfn|Bulman|Gibbs|2019}}{{sfn|Onyeji|Ayitogo|2018}} Additionally, the government placed the company under investigation for "allegations of abusive market dominance and unlawful tender procedures, resulting in excessive visa application prices and hidden fees."{{sfn|''Travel News Weekly''|2019}}

=== English-only service in Canada ===
In March 2023, VFS Global faced criticism for requiring a French-speaking applicant for permanent residency in Canada to respond only in English, despite that it is legally obligated to provide services in ].<ref name="jdm">{{cite news |last1=Lesage |first1=Valerie |title=Immigration: le Canada répond "in English only" |url=https://www.journaldemontreal.com/2023/05/19/immigration--le-canada-repond-in-english-only |access-date=11 November 2023 |publisher=Le Journal de Montréal |date=19 May 2023}}</ref><ref>{{cite web |title=Services and communications from federal institutions |url=https://www.clo-ocol.gc.ca/en/language-rights/services-communications-federal-institutions |publisher=Office of the Commissioner of Official Languages}}</ref> Quebec's Minister ] called it "completely unacceptable" and "all citizens should be able to interact with the federal government in their language of choice".<ref>{{cite news |title=Réponse "in english only" pour une demande en immigration: "Complètement inacceptable", dit Roberge |url=https://www.tvanouvelles.ca/2023/05/19/reponse-in-english-only-pour-une-demande-en-immigration--completement-inacceptable-dit-roberge |work=TVA Nouvelles |date=19 May 2023 |agency=Agence QMI}}</ref> VFS Global did not apologize for the incident.<ref name="jdm" />

== See also ==
* ]

== References ==
=== Citations ===
{{reflist|30em}}

=== Works cited ===
{{refbegin|30em|indent=yes}}
* {{Cite report | last = Baker | first = Linda Costelloe | title = Report of The Independent Investigation: Breach of Data Security in the VFS Online UK Visa Application Facility | date = 5 November 2009 | publisher = ] | location = London, United Kingdom | url = http://www.statewatch.org/news/2007/jul/uk-visa-security-report.pdf | access-date = 13 September 2012}}
* {{Cite news | last = Ballard | first = Mark | title = Indian problem could be worldwide | date = 18 May 2007 | work = ] | location = London, United Kingdom | url = https://www.theregister.co.uk/2007/05/18/visa_breach/ | access-date = 27 April 2015}}
* {{Cite news | title = Blackstone acquires 75% stake in VFS Global for $1.87 bn | date = 7 October 2021 | work = ] | location = Mumbai, India | url =
http://timesofindia.indiatimes.com/articleshow/86842129.cms | access-date = 1 July 2024 | language = en | ref = {{harvid|''Times of India''|2021}}}}
* {{Cite news |last1 = Bulman | first1 = May | last2 = Gibbs | first2 = Margot | title = How Home Office makes millions a week from outsourcing visas to Dubai-based firm accused of exploitation | date = 17 August 2019 | work = ] | location = London, United Kingdom | url = https://www.independent.co.uk/news/uk/home-news/home-office-vfs-visas-profit-subcontracted-contract-outsourcing-premium-services-exploited-a9056446.html | access-date = 28 September 2019}}
* {{Cite press release | last = Chauke | first = Hlomani | title = Committee Says VFS Monopoly at Home Affairs Is Indefensible | date = 12 March 2019 | agency = ] | location = Cape Town, South Africa | publisher = Parliamentary Communication Services | url = https://www.parliament.gov.za/press-releases/committee-says-vfs-monopoly-home-affairs-indefensible | access-date = 28 September 2019}}
* {{Cite news | last = Dehghan | first = Saeed Kamali | title = Users' data compromised after technical glitch at Home Office contractor | date = 17 July 2015 | work = ] | location = London, United Kingdom | url = https://www.theguardian.com/technology/2015/jul/17/users-data-compromised-after-technical-glitch-at-home-office-contractor | access-date = 28 September 2019}}
* {{Cite news | last = Donnelly | first = Lynley | title = Visa Services Under Investigation | date = 27 June 2014 | work = ] | location = Johannesburg, South Africa | url = http://mg.co.za/article/2014-06-26-visa-services-under-investigation | access-date = 26 September 2019}}
* {{Cite report | title = Foreign Office in breach of the Data Protection Act | date = 13 November 2007 | publisher = ] | location = Wilmslow, Cheshire, United Kingdom | url = http://www.ico.gov.uk/upload/documents/pressreleases/2007/fco_undertaking_131107.pdf |access-date = 13 September 2012 |archive-url=https://web.archive.org/web/20080804154730/http://www.ico.gov.uk/upload/documents/pressreleases/2007/fco_undertaking_131107.pdf |archive-date=4 August 2008 |url-status=dead |ref={{harvid|Information Commissioner's Office|2007}}}}
* {{Cite news |last = Gibbs | first = Margot | title = VFS: Who is the company subcontracted by the Home Office to process visa applications? | date = 17 August 2019 | work = ] | location = London, United Kingdom | url = https://www.independent.co.uk/news/uk/home-news/vfs-global-home-office-outsourcing-visa-applications-a9061476.html |access-date = 28 September 2019}}
* {{Cite news | last = Goodin | first = Dan | title = Investigator Ridicules UK Visa Site | date = 11 August 2007 | work = ] | location = London, United Kingdom |url=https://www.theregister.co.uk/2007/08/11/uk_visa_site_investigation/ |access-date = 13 September 2012}}
* {{Cite news | last1 = Harper | first1 = Tom | last2 = Leapman | first2 = Ben | title = Interpol boss criticises immigrant checks | date = 8 July 2007 | work = ] | location = London, United Kingdom | url = https://www.telegraph.co.uk/news/uknews/1556814/Interpol-boss-criticises-immigrant-checks.html | access-date = 28 September 2019}}
* {{Cite news |title = How VFS Global will use AI to improve visa processing | date = 29 April 2024 | work = ] | location = Mumbai, India |url=https://timesofindia.indiatimes.com/technology/tech-news/how-vfs-global-will-use-ai-to-improve-visa-processing/articleshow/109701144.cms |access-date=2024-06-27 | ref = {{harvid|''Times of India''|2024}}}}
* {{Cite news | last = Johnson | first = Bobbie | title = UK government failed to protect privacy of online visa applications | date = 14 November 2007 | work = ] | location = London, United Kingdom | url = https://www.theguardian.com/technology/2007/nov/14/data.protection.breach | access-date = 13 September 2012}}
* {{Cite magazine | last = Nsehe | first = Mfonobong | title = Meet Zubin Karkaria, The Man Who Built The World's Largest Visa And Consular Services Company | date = December 17, 2018 | magazine = ] | location = Jersey City, New Jersey | url = https://www.forbes.com/sites/mfonobongnsehe/2018/12/17/meet-zubin-karkaria-the-man-who-built-the-worlds-largest-visa-and-consular-services-company/ | access-date = May 2, 2022 | url-access = subscription}}
* {{Cite news | last1 = Onyeji | first1 = Ebuka | last2 = Ayitogo | first2 = Nasir | title = How Visa Processing Firm, VFS Global, 'extorts', 'mistreats' Nigerians | date = 14 May 2018 | url = https://www.premiumtimesng.com/investigationspecial-reports/268332-special-report-how-visa-processing-firm-vfs-global-extorts-mistreats-nigerians.html | work = ] | location = Abuja, Nigeria | access-date = 26 September 2019}}
* {{Cite news | last = Saurabh | first = Sinha | title = VFS Global completes acquisition of visa service provider TT Services | date = 23 August 2017 | work = ] | location = Mumbai, India | url = https://timesofindia.indiatimes.com/business/india-business/vfs-global-completes-acquisition-of-visa-service-provider-tt-services/articleshow/60189862.cms | access-date = 15 February 2018}}
* {{Cite news | last1 = Schuetze | first1 = Arno | first2 = Oliver | last2 = Hirt | title = EQT to launch sale of Swiss outsourcing company VFS | date = 15 January 2019 | work = ] | location = London, United Kingdom | url = https://www.reuters.com/article/us-eqt-vfs-sale/eqt-to-launch-sale-of-swiss-outsourcing-company-vfs-idUSKCN1P90WU | access-date = 28 November 2019}}
* {{Cite magazine | last = Shifrin | first = Tash | title = U.K. government slammed over bug in outsourced Web site | date = 10 August 2007 | magazine = ] | location = Framingham, Massachusetts | url = https://www.computerworld.com/article/2543062/u-k--government-slammed-over-bug-in-outsourced-web-site.html | url-status = dead | archive-url = https://web.archive.org/web/20190928190608/https://www.computerworld.com/article/2543062/u-k--government-slammed-over-bug-in-outsourced-web-site.html | archive-date = 28 September 2019 | access-date = 2 May 2022}}
* {{Cite news | title = South African lawmakers opposes monopoly in issuing of visas | date = 12 March 2019 | work = ] | location = Beijing, China | language = zh |url=http://www.xinhuanet.com/english/2019-03/12/c_137889506.htm | access-date = 28 September 2019 |url-status=dead |archive-date=14 August 2019 |archive-url=https://web.archive.org/web/20190814055921/http://www.xinhuanet.com/english/2019-03/12/c_137889506.htm | ref = {{harvid|''Xinhua''|2019}}}}
* {{Cite news | last = Srivastava | first = Priya | title = 16 Indian cities to have Cyprus Visa Application Centre from now | date = 23 November 2017 | work = ] | location = Mumbai, India | url = https://timesofindia.indiatimes.com/travel/destinations/16-indian-cities-to-have-cyprus-visa-application-centre-from-now/as61753078.cms | access-date = 28 September 2019}}
* {{Cite press release | title = Statement of VFS representative before the European Parliament | date = 10 July 2018 | publisher = ] | location = Brussels, Belgium | url = http://www.europarl.europa.eu/cmsdata/151341/1-4-chris-dix.pdf | access-date = 2 May 2022 | ref = {{harvid|European Parliament|2018}}}}
* {{Cite news | last = Taylor | first = Lesley Ciarula | title = Private firm's work with visas raises concerns | date = 13 October 2008 | work = ] | location = Toronto, Canada | url = https://www.thestar.com/news/gta/2008/06/16/private_firms_work_with_visas_raises_concerns.html | access-date = 13 September 2012}}
* {{Cite news | title = VFS 'Monopoly' Indefensible – Portfolio Committee | date = 20 March 2019 | work = Travel News Weekly | location = Cape Town, South Africa | number = 2535 | page = 2 | url = http://storage.news.nowmedia.co.za/medialibrary/Feature/6997/20-March-2019.pdf | url-status = dead | archive-url = https://web.archive.org/web/20190926191153/http://storage.news.nowmedia.co.za/medialibrary/Feature/6997/20-March-2019.pdf | archive-date = 26 September 2019 | access-date = 2 May 2022 | quote = The Portfolio Committee on Home Affairs has criticised the Department of Home Affairs' decision to grant VFS Global a further two-year extension to administer the issuing of visas to foreign nationals. | ref = {{harvid|''Travel News Weekly''|2019}}}}
* {{Cite web | title = Milestones | year = 2022 | url = https://www.vfsglobal.com/en/general/milestones.html | website = VFS Global | access-date = 16 November 2022 | ref = {{harvid|VFS Global: Milestones|2022}}}}
{{refend}}

{{DEFAULTSORT:VFS Global}}
]
]
]
]
]

Latest revision as of 07:56, 23 October 2024

Outsourcing services company

VFS Global
Company typePrivate company
FoundedMumbai, Maharashtra, India (July 2001 (2001-07))
HeadquartersDubai, United Arab Emirates
Area servedWorldwide
Key people
  • Zubin Karkaria (Founder & CEO)
  • Dhiren Savla (CIO)
  • Bernard Martyris (CCO)
  • Jiten Vyas (CCO)
Number of employees8960 (as on 30 November 2022)
ParentThe Blackstone Group
Websitewww.vfsglobal.com

VFS Global is a visa and passport administration outsourcing company for governments and diplomatic missions. Zubin Karkaria founded the company in 2001 while he was chief executive at Kuoni Travel. Formerly based in India, the company is now headquartered in Dubai with offices in 147 countries. In 2018, VFS processed approximately 25 million visa applications, often containing passport details and financial histories, on behalf of the British Home Office and 61 other governments.

Over the past two decades, VFS Global has faced criticism for alleged exploitative practices, lack of transparency, and data security failures. Visa applicants from lower-income countries have reported missed flights and wrongful denials due to delays and errors, including failure to scan key documents.

History

Origins and revenue model

Founder Zubin Karkaria conceived the idea for VFS Global while working with the Kuoni Group. Karkaria believed one could circumvent embassy's wait times required for processing visa applications by outsourcing the administrative work. He soon "persuaded the US government to pilot a scheme for Indian visa applicants to the US at its Mumbai embassy". The company opened its first visa processing centre in Mumbai that same year. In 2003, the company acquired a UK Government contract to process visa applications from India.

VFS Global Mumbai, India

By 2007, the company had obtained its first global account from UK Visas and Immigration for operations in 33 countries. Within one year of gaining its account, the company's image was tarnished by a data breach which exposed the sensitive information of UK visa applicants. Despite recurrent data breaches, the company later obtained a major contract with the United Kingdom to administer the majority of the UK's visa applications. The contract was a significant change in how visa applicants to the United Kingdom were charged to have their applications processed.

The company's growth was primarily due to its revenues from service fees paid directly by visa applicants. In 2009, financial records indicated that VFS Global's parent company at the time, VF Worldwide Holdings, was an offshore corporation in Mauritius, an African tax haven.

Expansion and growth

In August 2017, the VFS Global acquired the UK-based visa service provider TT Services (TTS) for an undisclosed amount. At the time of the acquisition, TTS operated 51 visa application centres in over 35 countries with 216 employees. Later that year, in November, VFS Global expanded its visa services in Cyprus with new centres launched in the additional cities of Thiruvananthapuram, Goa, Gurugram, and Jaipur.

In January 2019, the parent company of VFS Global, EQT AB, declared their intention to sell the company. In August 2019, an in-depth financial investigation by the British newspaper The Independent revealed that VFS Global had experienced exponential growth in recent years and its shareholders extracted £567m through "distribution to owner" payments and inter-company loan write-offs. This growth has been attributed to the company's "exploitative" business practices.

In October 2021, Blackstone acquired a majority stake in VFS Global. Kuoni and Hugentobler Foundation remains a minority stakeholder. Prior to October 2021, the company was owned by a private equity fund and, as VF Worldwide Holdings, is incorporated in the African tax haven of Mauritius. Investors in the company include the Chinese and Emiratis investment authorities, the Ohio Police & Fire Pension Fund, and Theo Müller.

Criticism and controversies

Throughout its existence during the past two decades, VFS Global has attracted considerable criticism from governments, investigative journalists, and its clients. The company allegedly pressured visa applicants into purchasing premium services such as premium lounges. In 2019, the British Home Office was deluged by complaints from customers applying for visas using VFS Global, many of whom accused the company of "exploiting vulnerable applicants for profit." The majority of these applicants were from lower-income countries, and they "missed flights and were wrongly denied visas due to delays and administrative errors, including apparent failure to scan vital documents."

Data breaches

Initial breach and inaction

Between 2005 and 2007, a security flaw in the VFS Global application website for the British Foreign & Commonwealth Office resulted in many visa applications from India, Nigeria and Russia being publicly accessible. Sensitive data stored in VFS's online service could be accessed by simply altering the VFS website's URL address. By doing so, anyone could access the company's visa applicant database including their "stored passport numbers, names, addresses, and travel details." Although the security flaw had been known since December 2005, VFS Global addressed the issue only after media reports in May 2007.

UK government investigation

Following this data breach and media outcry, the UK Secretary of State for Foreign and Commonwealth Affairs appointed an independent investigator to uncover the reasons for the breach of security in the VFS online visa application website. The subsequent July 2007 report highlighted many failures by VFS, including that VFS had failed to protect personal data to the levels expected by the UK Data Protection Act. The report recommended that the VFS online visa applications not be resumed for applications from India.

In November 2007, the UK Information Commissioner's Office announced that it had found the Foreign Office's contractual relationship with VFS Global to be in breach of its obligations under the Data Protection Act 1998. The Information Commissioner's Office required the Foreign Office to sign a statement that it would comply with the Data Protection Act and would not reopen the VFS UK visa online facility. As a result of this ruling, the Foreign Office reviewed its relationship with the organization and briefly sought to significantly reduce its outsourced work, especially in the IT industry.

Following this incident, several governments criticized VFS Global's abilities and porous security protocols. "There's the accountability issue, the privacy issue and why are we outsourcing to a for-profit entity something that belongs in the security mandate?" asked Victor Wong, executive director of the Chinese Canadian National Council. Likewise, Liam Clifford, an immigration expert working for Global Visas, raised security concerns associated with VFS Global's operations: "Once you put this work in the hands of private companies overseas, you no longer have the same protection."

2015 data breaches

VFS Global's data security again came under scrutiny in July 2015 when its online visa forms for Italy allowed any user to access the personal information of other applicants—including their date of birth, passport details and addresses—if they input the ID number of another person when logging into the system.

Monopoly allegations

VFS Global has been alleged to be a monopolistic enterprise operating in the visa outsourcing sector. Its alleged monopoly has led to issues related to prohibitive visa application prices and also sparked concerns in the areas of centralised document handling and content security.

In June 2014, the South African Competition Commission investigated the company regarding allegations of market dominance in the visa support services market to foreign embassies. The Commission recommended further investigations into the company. In a statement to European Union parliament in July 2018, VFS Global denied that their company operates as a monopoly, though its prepared statement did not cite any outsourcing companies with whom they are in competition for winning contracts.

Extortion allegations

In 2019, the Nigerian government's Portfolio Committee on Home Affairs accused VFS Global of "extorting" and "mistreating" vulnerable visa applicants in developing countries such as Nigeria. Additionally, the government placed the company under investigation for "allegations of abusive market dominance and unlawful tender procedures, resulting in excessive visa application prices and hidden fees."

English-only service in Canada

In March 2023, VFS Global faced criticism for requiring a French-speaking applicant for permanent residency in Canada to respond only in English, despite that it is legally obligated to provide services in both official languages of Canada. Quebec's Minister Jean-François Roberge called it "completely unacceptable" and "all citizens should be able to interact with the federal government in their language of choice". VFS Global did not apologize for the incident.

See also

References

Citations

  1. VFS Global: Milestones 2022.
  2. Times of India 2024.
  3. ^ Gibbs 2019.
  4. Baker 2009; Goodin 2007; Shifrin 2007; Gibbs 2019.
  5. Goodin 2007; Chauke 2019; Xinhua 2019; Gibbs 2019.
  6. ^ Bulman & Gibbs 2019.
  7. ^ Nsehe 2018.
  8. ^ Ballard 2007.
  9. ^ Shifrin 2007.
  10. Ballard 2007; Baker 2009; Dehghan 2015.
  11. ^ Saurabh 2017.
  12. Srivastava 2017.
  13. Schuetze & Hirt 2019.
  14. Times of India 2021.
  15. Goodin 2007; Shifrin 2007; Baker 2009.
  16. ^ Baker 2009.
  17. Goodin 2007.
  18. Information Commissioner's Office 2007.
  19. Johnson 2007.
  20. ^ Taylor 2008.
  21. Harper & Leapman 2007.
  22. Dehghan 2015.
  23. ^ Travel News Weekly 2019; Chauke 2019; Xinhua 2019.
  24. ^ Donnelly 2014.
  25. ^ European Parliament 2018.
  26. Onyeji & Ayitogo 2018.
  27. Travel News Weekly 2019.
  28. ^ Lesage, Valerie (19 May 2023). "Immigration: le Canada répond "in English only"". Le Journal de Montréal. Retrieved 11 November 2023.
  29. "Services and communications from federal institutions". Office of the Commissioner of Official Languages.
  30. "Réponse "in english only" pour une demande en immigration: "Complètement inacceptable", dit Roberge". TVA Nouvelles. Agence QMI. 19 May 2023.

Works cited

Categories: