Company type | Private company |
---|---|
Founded | Mumbai, Maharashtra, India (July 2001 (2001-07)) |
Headquarters | Dubai, United Arab Emirates |
Area served | Worldwide |
Key people |
|
Number of employees | 8960 (as on 30 November 2022) |
Parent | The Blackstone Group |
Website | www.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.
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
- VFS Global: Milestones 2022.
- Times of India 2024.
- ^ Gibbs 2019.
- Baker 2009; Goodin 2007; Shifrin 2007; Gibbs 2019.
- Goodin 2007; Chauke 2019; Xinhua 2019; Gibbs 2019.
- ^ Bulman & Gibbs 2019.
- ^ Nsehe 2018.
- ^ Ballard 2007.
- ^ Shifrin 2007.
- Ballard 2007; Baker 2009; Dehghan 2015.
- ^ Saurabh 2017.
- Srivastava 2017.
- Schuetze & Hirt 2019.
- Times of India 2021.
- Goodin 2007; Shifrin 2007; Baker 2009.
- ^ Baker 2009.
- Goodin 2007.
- Information Commissioner's Office 2007.
- Johnson 2007.
- ^ Taylor 2008.
- Harper & Leapman 2007.
- Dehghan 2015.
- ^ Travel News Weekly 2019; Chauke 2019; Xinhua 2019.
- ^ Donnelly 2014.
- ^ European Parliament 2018.
- Onyeji & Ayitogo 2018.
- Travel News Weekly 2019.
- ^ Lesage, Valerie (19 May 2023). "Immigration: le Canada répond "in English only"". Le Journal de Montréal. Retrieved 11 November 2023.
- "Services and communications from federal institutions". Office of the Commissioner of Official Languages.
- "Réponse "in english only" pour une demande en immigration: "Complètement inacceptable", dit Roberge". TVA Nouvelles. Agence QMI. 19 May 2023.
Works cited
- Baker, Linda Costelloe (5 November 2009). Report of The Independent Investigation: Breach of Data Security in the VFS Online UK Visa Application Facility (PDF) (Report). London, United Kingdom: Foreign & Commonwealth Office. Retrieved 13 September 2012.
- Ballard, Mark (18 May 2007). "Indian problem could be worldwide". The Register. London, United Kingdom. Retrieved 27 April 2015.
- "Blackstone acquires 75% stake in VFS Global for $1.87 bn". Times of India. Mumbai, India. 7 October 2021. Retrieved 1 July 2024.
- Bulman, May; Gibbs, Margot (17 August 2019). "How Home Office makes millions a week from outsourcing visas to Dubai-based firm accused of exploitation". The Independent. London, United Kingdom. Retrieved 28 September 2019.
- Chauke, Hlomani (12 March 2019). "Committee Says VFS Monopoly at Home Affairs Is Indefensible" (Press release). Cape Town, South Africa: Parliamentary Communication Services. Parliament of the Republic of South Africa. Retrieved 28 September 2019.
- Dehghan, Saeed Kamali (17 July 2015). "Users' data compromised after technical glitch at Home Office contractor". The Guardian. London, United Kingdom. Retrieved 28 September 2019.
- Donnelly, Lynley (27 June 2014). "Visa Services Under Investigation". Mail & Guardian. Johannesburg, South Africa. Retrieved 26 September 2019.
- Foreign Office in breach of the Data Protection Act (PDF) (Report). Wilmslow, Cheshire, United Kingdom: Information Commissioner's Office. 13 November 2007. Archived from the original (PDF) on 4 August 2008. Retrieved 13 September 2012.
- Gibbs, Margot (17 August 2019). "VFS: Who is the company subcontracted by the Home Office to process visa applications?". The Independent. London, United Kingdom. Retrieved 28 September 2019.
- Goodin, Dan (11 August 2007). "Investigator Ridicules UK Visa Site". The Register. London, United Kingdom. Retrieved 13 September 2012.
- Harper, Tom; Leapman, Ben (8 July 2007). "Interpol boss criticises immigrant checks". The Telegraph. London, United Kingdom. Retrieved 28 September 2019.
- "How VFS Global will use AI to improve visa processing". The Times of India. Mumbai, India. 29 April 2024. Retrieved 27 June 2024.
- Johnson, Bobbie (14 November 2007). "UK government failed to protect privacy of online visa applications". The Guardian. London, United Kingdom. Retrieved 13 September 2012.
- Nsehe, Mfonobong (17 December 2018). "Meet Zubin Karkaria, The Man Who Built The World's Largest Visa And Consular Services Company". Forbes. Jersey City, New Jersey. Retrieved 2 May 2022.
- Onyeji, Ebuka; Ayitogo, Nasir (14 May 2018). "How Visa Processing Firm, VFS Global, 'extorts', 'mistreats' Nigerians". Premium Times. Abuja, Nigeria. Retrieved 26 September 2019.
- Saurabh, Sinha (23 August 2017). "VFS Global completes acquisition of visa service provider TT Services". The Times of India. Mumbai, India. Retrieved 15 February 2018.
- Schuetze, Arno; Hirt, Oliver (15 January 2019). "EQT to launch sale of Swiss outsourcing company VFS". Reuters. London, United Kingdom. Retrieved 28 November 2019.
- Shifrin, Tash (10 August 2007). "U.K. government slammed over bug in outsourced Web site". Computerworld. Framingham, Massachusetts. Archived from the original on 28 September 2019. Retrieved 2 May 2022.
- "South African lawmakers opposes monopoly in issuing of visas". Xinhua (in Chinese). Beijing, China. 12 March 2019. Archived from the original on 14 August 2019. Retrieved 28 September 2019.
- Srivastava, Priya (23 November 2017). "16 Indian cities to have Cyprus Visa Application Centre from now". Times of India. Mumbai, India. Retrieved 28 September 2019.
- "Statement of VFS representative before the European Parliament" (PDF) (Press release). Brussels, Belgium: European Parliament. 10 July 2018. Retrieved 2 May 2022.
- Taylor, Lesley Ciarula (13 October 2008). "Private firm's work with visas raises concerns". Toronto Star. Toronto, Canada. Retrieved 13 September 2012.
- "VFS 'Monopoly' Indefensible – Portfolio Committee" (PDF). Travel News Weekly. No. 2535. Cape Town, South Africa. 20 March 2019. p. 2. Archived from the original (PDF) on 26 September 2019. Retrieved 2 May 2022.
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.
- "Milestones". VFS Global. 2022. Retrieved 16 November 2022.