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VFS Global

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VFS Global
Company typePrivate company
FoundedMumbai, Maharashtra, India (July 2001 (2001-07))
HeadquartersDubai, United Arab Emirates
Area served
Worldwide
Key people
  • Zubin Karkaria (Founder & CEO)[1]
  • Dhiren Savla (CIO)[1]
  • Bernard Martyris (CCO)[1]
  • Jiten Vyas (CCO)[1]
Number of employees
8960 (as on 30 November 2022)[2]
ParentThe Blackstone Group
Websitewww.vfsglobal.com

VFS Global is a visa and passport administration outsourcing company for governments and diplomatic missions.[3] Zubin Karkaria founded the company in 2001 while he was chief executive Zubin Karkaria at Kuoni Travel.[4] Formerly based in India, the company is now headquartered in Dubai with offices in 147 countries.[4] 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.[4]

History

Origins and revenue model

Founder Zubin Karkaria conceived the idea for VFS Global while were working with the Kuoni Group.[4] Karkaria believed one could circumvent embassy's wait times and administrative work required for processing visa applications by outsourcing administrative work required for processing visa applications.

The organization claims that outsourcing visa processing improves and personalizes the service that applicants receive by using enhanced physical and technological infrastructure. Moreover, it claims that the service lowers the security risk at embassies and consulates due to less crowding.[5] According to Karkaria, the U.S. government had reservations about his proposal but he convinced them "to allow us to run the purely administrative part of a visa application process" considered to be an arduous process. The company opened its first visa processing centre in Mumbai that same year.[5] In 2003, the company acquired a UK Government contract to process visa applications from India to the United Kingdom.[6]

The organization serves governments, payment gateways, banks, and courier services. It has expedited its client's visa application service with technologies such as chatbots, digital document checks and by providing visas on customer's doorsteps. In Europe, the company complies with GDPR compliance norms. Many of its innovations came from its lab in Mumbai.[7]

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 which had been "incorporated in the African tax haven of Mauritius." [4][8][6]

By 2007, the company had obtained its first global account from UK Visas and Immigration for operations across 33 countries. Within one year of gaining its account with the UK government, the company's image was tarnished by a data breach which exposed the sensitive information of UK visa applicants.[9][10] Despite this breach, the outsourcing company nevertheless obtained a major contract with the United Kingdom in 2014 to administer the majority of the UK's visa applications.[8] The contract was a significant change in how visa applicants to the United Kingdom were charged to have their applications processed.[6]

During the past two decades of its operations, VFS Global has attracted considerable criticism. It has been criticized for allegedly exploitative practices and for its lack of transparency.[4][8][6] The company has been "accused of pressuring visa applicants" into purchasing premium services which "they often don't need and can't afford."[8][6] In 2019, the British Home Office was deluged by complaints from customers applying for visas using VFS Global,[6] many of whom accused the company "of exploiting vulnerable applicants for profit."[6] Applicants—"the majority of whom are from lower-income countries"—asserted they "missed flights and were wrongly denied visas due to delays and administrative errors, including apparent failure to scan vital documents."[6]

Expansion and growth

In August 2017, the outsourcing company acquired the UK-based visa service provider TT Services (TTS) for an undisclosed amount.[11] At the time of the acquisition, TTS operated 51 visa application centres in over 35 countries with 216 employees.[11] Later that year, in November 2017, VFS Global expanded its visa services in Cyprus with new centres launched in the additional cities of Thiruvananthapuram, Goa, Gurugram, and Jaipur. These expansions increased the amount of visa centres where applicants were offered additional services, such as SMS updates, courier services, and online tracking services.[12]

In January 2019, the parent company of VFS Global, EQT AB, declared their intention to sell the company.[13] 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 had "extracted about £567m via 'distribution to owner' payments and writing off inter-company loans in the past two years."[8] The newspaper attributed this growth to the outsourcing company's "exploitative" business practices.[8]

In October 2021, Blackstone acquired a majority stake in VFS Global. Kuoni and Hugentobler Foundation remains a minority stakeholder.[14] Prior to October 2021, the outsourcing company was owned by a private equity fund and, as VF Worldwide Holdings, is incorporated in the African tax haven of Mauritius.[4][8] Investors in the outsourcing company include the Chinese and Emiratis investment authorities, the Ohio Police & Fire Pension Fund, and Theo Müller.[4]

Criticisms and controversies

Throughout its existence during the past two decades, VFS Global has attracted considerable criticism from governments, investigative journalists, and its clients.[15][16][10] The company allegedly pressured visa applicants into purchasing premium services which "they often don't need and can't afford."[8][6] In 2019, the British Home Office was deluged by complaints from customers applying for visas using VFS Global,[6] many of whom accused the company of "exploiting vulnerable applicants for profit."[6] 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."[6]

2005–2007 data breaches

Initial breach and inaction

Between 2005 and 2007, a critical 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.[9] Sensitive data stored in VFS's online service could be accessed by simply "making changes" to the VFS website's URL address.[9] By doing so, any viewer could access the company's "database of visa applicants, which stored passport numbers, names, addresses, and travel details."[9] The security flaw had been known since December 2005,[9] but the issue was addressed only in May 2007 following media reports.[9][17] The security breach had been first reported in December 2005 by an Indian national, Sanjib Mitra,[15][9] after which no effective remedial action was taken by VFS. The same applicant went public in May 2007 after he noticed that his earlier warnings were ignored.[9]

UK government investigation

Following this data breach and media outcry,[10] 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.[15] The subsequent report, released in July 2007, highlighted "organisational failures" by VFS.[15][16][10] VFS had purportedly underestimated what was necessary in order to protect personal data to the levels expected by the UK Data Protection Act.[15] The report also recommended that the VFS online visa applications not be resumed for applications from India.[15]

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.[18] As a result of this ruling, the Foreign Office reviewed its relationship with VFS and briefly sought to significantly reduce its outsourced work, especially in the area of IT.[19] After the report was issued, VFS spent "$2 million on online security in the next year,"[20] Following this incident, several governments were critical of VFS Global's abilities and raised concerns over its lacklustre security protocols.[20] "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.[20] 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."[20][21]

2015 data breaches

VFS Global's online 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.[22] Following the discovery of 2015 security issues, the outsourcing company stated in 2016 that they had instituted new security protocols.[23] VFS Global claims to annually renew its ISO 27001 audit and certification.[23]

2014–2019 monopoly allegations

VFS Global has been alleged to be a monopolistic enterprise operating in the visa outsourcing sector.[24][25][26] 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, though VFS claims a streamlined application submission process in all its centres.[27] For example, VFS staff at its collection offices in Southeast Asia were accused of abusing its dominant market status by creating their own extemporaneous rules for visa applicants.[28] This included entry criteria to the VFS centres and also level of assistance offered to applicants.[28]

Three years later, in June 2014, the outsourcing company was investigated by the South African Competition Commission regarding allegations of market dominance by VFS Global in the visa support services market to foreign embassies.[29] The Commission's spokesperson Themba Mathebula stated that the commission's screening unit had completed its preliminary investigation and submitted its report, recommending further formal investigations into the outsourcing company.[29] In a statement to European Union parliament in July 2018, VFS Global denied that their outsourcing company is operating as a monopoly,[30] though its prepared statement did not cite any outsourcing companies with whom they are in competition for winning contracts.[30]

2019 extortion allegations

The outsourcing company has been accused of "extorting" and "mistreating" vulnerable visa applicants in developing countries such as Nigeria.[6][31] Additionally, the company was also reported to be under investigation for "allegations of abusive market dominance and unlawful tender procedures, resulting in excessive visa application prices and hidden fees."[24]

2023 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.[32][33] 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".[34] VFS Global did not apologize for the incident.[32]

See also

References

  1. ^ a b c d "Executive Board Members". www.vfsglobal.com. Retrieved 10 March 2023.
  2. ^ VFS Global: Milestones 2022.
  3. ^ Times of India 2024.
  4. ^ a b c d e f g h Gibbs 2019a.
  5. ^ a b Nsehe 2018.
  6. ^ a b c d e f g h i j k l m Bulman & Gibbs 2019.
  7. ^ Ali 2022.
  8. ^ a b c d e f g h Gibbs 2019b.
  9. ^ a b c d e f g h Ballard 2007.
  10. ^ a b c d Shifrin 2007.
  11. ^ a b Saurabh 2017.
  12. ^ Srivastava 2017.
  13. ^ Schuetze & Hirt 2019.
  14. ^ Dhanjal 2021.
  15. ^ a b c d e f Baker 2009.
  16. ^ a b Goodin 2007.
  17. ^ Winder 2007.
  18. ^ Information Commissioner's Office 2007.
  19. ^ Johnson 2007.
  20. ^ a b c d Taylor 2008.
  21. ^ Harper & Leapman 2007.
  22. ^ Dehghan 2015.
  23. ^ a b Raval 2016.
  24. ^ a b Travel News Weekly 2019.
  25. ^ Chauke 2019.
  26. ^ Xinhua 2019.
  27. ^ Hunter 2013.
  28. ^ a b "Make sure your UK Visa Application is not refused because of VFS". Thais Care. Bangkok, Thailand. October 2011. Archived from the original on 7 February 2012. Retrieved 28 September 2019.
  29. ^ a b Donnelly 2014.
  30. ^ a b VFS Statement 2018.
  31. ^ Onyeji & Ayitogo 2018.
  32. ^ a b Lesage 2023.
  33. ^ Commissioner of Official Languages of Canada 2024.
  34. ^ TVA Nouvelles 2023.

Works cited

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