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The company began as a "side project" at a luxury Swiss travel group Kuoni in 2001 by chief executive Zubin Karkaria.<ref name="Independent"/> Formerly based in ], the company is now headquartered in ] with offices in 147 countries, its scale is such that last year alone, VFS processed more than 25 million visa applications, often containing passport details and financial histories, on behalf of the Home Office and 61 other governments.<ref name="Independent">{{cite news | last = Gibbs | first = Margot | title = VFS: Who is the company subcontracted by the Home Office to process visa applications? | newspaper = ] | location = London | date = 17 August 2019 | url = https://www.independent.co.uk/news/uk/home-news/vfs-global-home-office-outsourcing-visa-applications-a9061476.html | access-date = 28 September 2019}}</ref><ref>{{cite news | url = http://www.bellevision.com/index.php?action=topnews_print&type=18930 | title = Dubai: Latvia Opens New External Visa Centres in UAE in Partnership with VFS Global | publisher = BelleVision |date = 5 February 2018 | access-date = 14 February 2018 | location = Dubai}}</ref> The company began as a "side project" at a luxury Swiss travel group Kuoni in 2001 by chief executive Zubin Karkaria.<ref name="Independent"/> Formerly based in ], the company is now headquartered in ] with offices in 147 countries, its scale is such that last year alone, VFS processed more than 25 million visa applications, often containing passport details and financial histories, on behalf of the Home Office and 61 other governments.<ref name="Independent">{{cite news | last = Gibbs | first = Margot | title = VFS: Who is the company subcontracted by the Home Office to process visa applications? | newspaper = ] | location = London | date = 17 August 2019 | url = https://www.independent.co.uk/news/uk/home-news/vfs-global-home-office-outsourcing-visa-applications-a9061476.html | access-date = 28 September 2019}}</ref><ref>{{cite news | url = http://www.bellevision.com/index.php?action=topnews_print&type=18930 | title = Dubai: Latvia Opens New External Visa Centres in UAE in Partnership with VFS Global | publisher = BelleVision |date = 5 February 2018 | access-date = 14 February 2018 | location = Dubai}}</ref>


The outsourcing company is owned by a ]<ref name="Independent"/> and, as VF Worldwide Holdings, is "incorporated in the African tax haven of ]."<ref name="Gibbs"/><ref name="Independent"/> Investors in the outsourcing company include the ] and ] investment authorities, the Ohio Police and Fire Pension Fund, and ] billionaire ].<ref name="Independent"/> It has been recurrently criticized for allegedly exploitative practices and for its lack of transparency.<ref name="Independent"/><ref name="Bulman"/><ref name="Gibbs">{{cite web | last = Gibbs | first = Margot | title = VFS: The 'exploitative' Dubai-based firm fuelling a massive surge in Home Office profits from UK visas | website = Finance Uncovered | date = 21 August 2019 | access-date = 28 September 2019 | url = https://www.financeuncovered.org/investigations/vfs-the-exploitative-dubai-based-firm-fuelling-a-massive-surge-in-home-office-profits-from-uk-visas/}}</ref> The outsourcing company is owned by a ]<ref name="Independent"/> and, as VF Worldwide Holdings, is "incorporated in the African tax haven of ]."<ref name="Gibbs"/><ref name="Independent"/> Investors in the outsourcing company include the ] and ] investment authorities, the Ohio Police and Fire Pension Fund, and ] billionaire ].<ref name="Independent"/> It has been recurrently criticized for allegedly exploitative practices and for its lack of transparency.<ref name="Independent"/><ref name="Bulman"/><ref name="Gibbs">{{cite web | last = Gibbs | first = Margot | title = VFS: The 'exploitative' Dubai-based firm fuelling a massive surge in Home Office profits from UK visas | website = Finance Uncovered | date = 21 August 2019 | access-date = 28 September 2019 | url = https://www.financeuncovered.org/investigations/vfs-the-exploitative-dubai-based-firm-fuelling-a-massive-surge-in-home-office-profits-from-uk-visas/}}</ref>


VFS Global has been "accused of pressuring visa applicants" into purchasing premium services which "they often don't need and can't afford."<ref name="Gibbs"/><ref name="Bulman">{{cite news | last1 = Bulman | first1 = Mar | last2 = Margot | first2 = Gibbs | title = How Home Office makes millions a week from outsourcing visas to Dubai-based firm accused of exploitation | url = https://www.independent.co.uk/news/uk/home-news/home-office-vfs-visas-profit-subcontracted-contract-outsourcing-premium-services-exploited-a9056446.html | newspaper = ] | location = London | date = 17 August 2019 | access-date = 28 September 2019}}</ref> In 2019, the ] was "deluged" by complaints from customers applying for visas using VFS Global,<ref name="Bulman"/> many of whom accused the company "of exploiting vulnerable applicants for profit."<ref name="Bulman"/> Applicants — "the majority of whom are from lower-income countries" — have asserted they have "missed flights and were wrongly denied visas due to delays and administrative errors, including apparent failure to scan vital documents."<ref name="Bulman"/> VFS Global has been "accused of pressuring visa applicants" into purchasing premium services which "they often don't need and can't afford."<ref name="Gibbs"/><ref name="Bulman">{{cite news | last1 = Bulman | first1 = Mar | last2 = Margot | first2 = Gibbs | title = How Home Office makes millions a week from outsourcing visas to Dubai-based firm accused of exploitation | url = https://www.independent.co.uk/news/uk/home-news/home-office-vfs-visas-profit-subcontracted-contract-outsourcing-premium-services-exploited-a9056446.html | newspaper = ] | location = London | date = 17 August 2019 | access-date = 28 September 2019}}</ref> In 2019, the ] was "deluged" by complaints from customers applying for visas using VFS Global,<ref name="Bulman"/> many of whom accused the company "of exploiting vulnerable applicants for profit."<ref name="Bulman"/> Applicants — "the majority of whom are from lower-income countries" — have asserted they have "missed flights and were wrongly denied visas due to delays and administrative errors, including apparent failure to scan vital documents."<ref name="Bulman"/>

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VFS Global
Company typePrivate company
FoundedMumbai, Maharashtra, India (July 2001 (2001-07))
HeadquartersDubai, United Arab Emirates
Area servedWorldwide
Key people
  • Zubin Karkaria (CEO)
Number of employees8790 (31 July 2018)

VFS Global is an outsourcing and technology services specialist for governments and diplomatic missions worldwide. The company manages visa and passport issuance-related administrative and non-discretionary tasks for its client governments.

The company began as a "side project" at a luxury Swiss travel group Kuoni in 2001 by chief executive Zubin Karkaria. Formerly based in India, the company is now headquartered in Dubai with offices in 147 countries, its scale is such that last year alone, VFS processed more than 25 million visa applications, often containing passport details and financial histories, on behalf of the Home Office and 61 other governments.

The outsourcing company is owned by a private equity fund and, as VF Worldwide Holdings, is "incorporated in the African tax haven of Mauritius." Investors in the outsourcing company include the Chinese and Abu Dhabi investment authorities, the Ohio Police and Fire Pension Fund, and yogurt billionaire Theo Müller. It has been recurrently criticized for allegedly exploitative practices and for its lack of transparency.

VFS Global has been "accused of pressuring visa applicants" into purchasing premium services which "they often don't need and can't afford." 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." Applicants — "the majority of whom are from lower-income countries" — have asserted they have "missed flights and were wrongly denied visas due to delays and administrative errors, including apparent failure to scan vital documents."

History

Origins and revenue model

VFS Global was established in Mumbai, India, in 2001. In a Forbes magazine interview, CEO Zubin Karkaria claimed he founded VFS after he had "persuaded the US government to pilot a scheme for Indian visa applicants to the US at its Mumbai embassy." Both the shareholding and governing structure of VFS Global is not made public by Kuoni or VF Worldwide Holdings, an offshore company setup to own VFS Global and "incorporated in the African tax haven of Mauritius." By 2005, VFS Global had acquired lucrative contracts with eleven governments including the United Kingdom, Australia, and Canada. The outsourcing company obtains its revenues from service fees paid directly by the visa applicants, in addition to the visa fees which are remitted to the diplomatic mission.

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. Despite this breach, the outsourcing company obtained a major contract with the United Kingdom in 2014 "to administer around 70% of the UK's visa applications." Critics later alleged "this contract was a crucial step-change in how visa applicants could be squeezed for more money."

Expansion and growth

In August 2017, the outsourcing company 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 2017, VFS Global commenced the expansion of visa services network in Cyprus with new centres launched in the four additional cities of Thiruvananthapuram, Goa, Gurugram, and Jaipur. The expansion of the network of Cyprus visa centres was to a total of 16 cities in India where applicants were offered additional services, such as SMS updates, courier services, and online tracking services.

By the end of 2017, the company had added eight new government clients including Armenia, Bahrain, Cote d'Ivoire, Democratic Republic of Congo, Georgia, Nigeria, Slovakia, and Ukraine whereby VFS Global was servicing 58 client governments globally by offering a range of visa, permit, passport, consular, identity and citizen services at the end of the year.

In February 2018, VFS Global regained a visa processing service contract with the Government of Italy in the states of Cameroon, Ghana, and Saudi Arabia for another four years. The company also secured a 3-year contract to manage Italy visa services to the residents of Libya after participating in an official tender published by the Embassy of Italy in Libya. That same month, the outsourcing company secured contract extensions with Lithuania and Croatia, as well as announced the opening of Latvian visa application centres in the United Arab Emirates at Abu Dhabi and Dubai to process Schengen entry permits. This was part of the outsource mandate from the Latvian government for various countries such as the United Kingdom, China, India, Turkey, Georgia, Azerbaijan, Uzbekistan, Lebanon and South Korea.

In August 2019, a financial investigation by the British newspaper The Independent revealed that VFS Global had experienced exponential growth and its shareholders had "extracted about £567m via 'distribution to owner' payments and writing off intercompany loans in the past two years." The newspaper attributed this growth to the outsourcing company's "exploitative" business practices.

Services and partnerships

As part of a recent contract with DIFC Wills & Probate Registry, investors and residents in the UAE cities of Dubai and Ras Al Khaimah who have registered a will online were eligible to receive verification services from VFS Global as part of a 'Citizen Services' program. This came after the introduction of a law where asset-owners can use security features including e-authentication, verifying the identity of the testator and e-witnessing that ensures that the will was drafted and witnessed with no third party influence as part of the services provided.

In July 2017, VFS Global's education services arm-VFS Edu Support Services Pvt. Ltd., stated that they had entered into a partnership with UK-based Edtech Oxademy Technologies and its subsidiary Oxademy Business School in Mumbai. As part of the partnership, a new global digital learning platform ‘VFS-Oxademy' was formed with an artificial intelligence (AI) cloud infrastructure called OX360 was being launched.

VFS Global entered into partnerships with various commercial airline companies located in the GCC region to process e-visas through an online portal. In late 2016, the company's unit- Dubai Visa Processing Centre (DVPC) launched a mobile application for customers of Emirates Airline flying to the United Arab Emirates (UAE). Earlier in 2016, Qatar Airways and Qatar Tourism Authority had also signed an agreement with VFS Global to support the tourist visa application system initiative for inbound travelers planning to visit Qatar.

In April 2017, the Kingdom of Bahrain's national carrier, Gulf Air, signed a partnership with the company for an online platform for travelers to Bahrain.

In early 2017, Czech Tourism appointed VFS Global as its India representative for a year to support Indian travel agents and tour operator cooperation.

ENIT - Italian State Tourist Board reopened its Mumbai office in 2013 in association with VFS Global to assist the Tourism Board to set up their India operations to promote Italy as a tourism destination. In February 2015, VFS Global was appointed to represent Macau Tourism Office in India. As part of the partnership MGTO opened an office in Mumbai

The VFS Global-Atout France initiative was rolled out as a pilot project for disseminating information about France's tourism opportunities.

Controversies

2005-2007 Data breaches

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 "making changes" to the VFS website's URL address. By doing so, any viewer could access "to the firm's database of visa applicants, which stored passport numbers, names, addresses, and travel details." The security flaw had been known since December 2005, but the issue was addressed only in May 2007 following media reports. The security breach had been first reported in December 2005 by an Indian national, Sanjib Mitra, 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.

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 report, released in July 2007, highlighted "organisational failures" by VFS. VFS had purportedly underestimated what was necessary in order to protect personal data to the levels expected by the UK Data Protections Act. The report also 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 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 VFS and briefly sought to significantly reduce its outsourced work, especially in the area of IT. After the report was issued, VFS spent "$2 million on online security in the next year," and introduced various measures to ensure safe and secure business environment. One of them was to make all its centres ISO compliant.

Following this incident, several governments were critical of VFS Global's abilities and raised concerns over its lackluster 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 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.

Following the discovery of 2015 security issues, the outsourcing company stated in 2016 that they had instituted new security protocols. VFS Global annually renews the ISO 27001 audit and certification.

2014-2019 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, though VFS claims a streamlined application submission process in all its centres. 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. This included entry criteria to the VFS centres and also level of assistance offered to applicants.

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. 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 VFS.

In a statement to European Union parliament in July 2018, VFS global denied that the outsourcing company is operating as a monopoly, though its prepared statement did not cite any outsourcing companies they are in competition with for winning contracts.

2019 Extortion allegations

The outsourcing company has been accused of "extorting" and "mistreating" vulnerable visa applicants in developing countries such as Nigeria. Additionally, the company was also reported to be under investigation for allegations of abusive market dominance.

Reviews

Many visa applicants, facing no other alternative but to apply through VFS Global, have rated their processing services 1.5 out of 5 stars, with some reviewers asserting that "there should be option to choose 'No Star' or 'Negative Rating' specially for their horrible Customer care." Former VFS employees have alleged the company is systematically deceitful to applicants and that passports have been occasionally mishandled or lost due to poor organization.

References

  1. ^ "VFS Global". VFS Global. Retrieved 15 October 2015.
  2. ^ Gibbs, Margot (17 August 2019). "VFS: Who is the company subcontracted by the Home Office to process visa applications?". The Independent. London. Retrieved 28 September 2019.
  3. "Dubai: Latvia Opens New External Visa Centres in UAE in Partnership with VFS Global". Dubai: BelleVision. 5 February 2018. Retrieved 14 February 2018.
  4. ^ Gibbs, Margot (21 August 2019). "VFS: The 'exploitative' Dubai-based firm fuelling a massive surge in Home Office profits from UK visas". Finance Uncovered. Retrieved 28 September 2019.
  5. ^ Bulman, Mar; Margot, Gibbs (17 August 2019). "How Home Office makes millions a week from outsourcing visas to Dubai-based firm accused of exploitation". The Independent. London. Retrieved 28 September 2019.
  6. ^ "U.K. government slammed over bug in outsourced Web site". Computerworld. 10 August 2007. Retrieved 13 September 2012.
  7. ^ Ballard, Mark (18 May 2007). "Indian problem could be worldwide". London: The Register. Retrieved 27 April 2015.
  8. "VFS Global completes acquisition of visa service provider TT Services". Delhi: The Times of India. 23 August 2017. Retrieved 15 February 2018.
  9. "Cyprus Visa Application Centres now in 16 cities across India". India: Travel News Digest. 23 November 2017. Retrieved 19 February 2018.
  10. "VFS Global now serves Germany across 19 nations globally". Dubai: PR Newswire. 3 January 2018. Retrieved 14 February 2018.
  11. "VFS Global Further Strengthens Partnership With the Government of Italy". Dubai: IANS. 18 February 2018. Retrieved 19 February 2018.
  12. "Croatia and Lithuania Extend Their Contracts With VFS Global". Dubai: PR Newswire. 15 February 2018. Retrieved 15 February 2018.
  13. "VFS Global to process Schengen visa to Latvia". Dubai: Gulf News. 5 February 2018. Retrieved 14 February 2018.
  14. "Residents with registered wills to receive free verification services". Dubai: Gulf News. 8 November 2017. Retrieved 15 February 2018.
  15. "VFS Edu Support Services partners with Oxademy to launch World's first 'AI-based' online learning programs for students". Mumbai: Business World Education. 26 July 2017. Retrieved 15 February 2018.
  16. "VFS Global introduces mobile app for UAE visas". India: Travel Trends Today. 16 November 2016. Retrieved 15 February 2018.
  17. "Qatar Airways and QTA Sign Agreement with VFS Global". Doha: Marhaba. 1 September 2016. Retrieved 15 February 2018.
  18. "Gulf Air, VFS Global ink partnership agreement". Doha: Bahrain News Gazette. 26 April 2017. Retrieved 15 February 2018.
  19. "Czech Tourism appoints VFS Global as India rep". Mumbai: Tourism Breaking News. 23 February 2017. Retrieved 19 February 2018.
  20. "Czech Tourism appoints VFS Global as India rep". Mumbai: Travel Biz Monitor. 27 May 2013. Retrieved 19 February 2018.
  21. "VFS Global appointed Macau Tourism Office in India". Mumbai: Travel Biz Monitor. 12 February 2015. Retrieved 19 February 2018.
  22. "Now, apply for a French visa in Bengaluru". Bangalore: The Times of India. 16 May 2017. Retrieved 19 February 2018.
  23. Winder, Davey (20 June 2012). "Exposed: Indian visa application data accessible to anyone with a web browser". Daniweb. Retrieved 13 September 2012.
  24. ^ "Report of The Independent Investigation: Breach of Data Security in the VFS Online UK Visa Application Facility" (PDF). Fco.gov.uk. 5 November 2009. Retrieved 13 September 2012.
  25. Goodin, Dan (11 August 2007). "Investigator Ridicules UK Visa Site". London: The Register. Retrieved 13 September 2012.
  26. "Foreign Office in breach of the Data Protection Act" (PDF). Information Commissioner's Office. 13 November 2007. Retrieved 13 September 2012. {{cite journal}}: Cite journal requires |journal= (help)
  27. Johnson, Bobbie (14 November 2007). "UK government failed to protect privacy of online visa applications". London: The Guardian. Retrieved 13 September 2012.
  28. ^ Taylor, Lesley Ciarula (13 October 2008). "Private firm's work with visas raises concerns". Toronto: Toronto Star. Retrieved 13 September 2012.
  29. "Travel & Hospitality: VFS Global - Express Computer". Express Computer Online. 13 October 2008. Retrieved 13 September 2012.
  30. Harper, Tom; Leapman, Ben (8 July 2007). "Interpol boss criticises immigrant checks". The Telegraph. London. Retrieved 28 September 2019.
  31. Dehghan, Saeed Kamali (17 July 2015). "Users' data compromised after technical glitch at Home Office contractor". The Guardian. London. Retrieved 28 September 2019.
  32. ^ "Security is of paramount importance to us". Mumbai: Express Travel World. 11 June 2016. Retrieved 15 February 2018.
  33. ^ "VFS 'monopoly' indefensible – Portfolio Committee" (PDF). Travel News Weekly. No. 2535. 20 March 2019. p. 2. Retrieved 26 September 2019. {{cite news}}: Invalid |ref=harv (help)
  34. "South African lawmakers opposes monopoly in issuing of visas". Xinhua News Agency. 12 March 2019. Retrieved 28 September 2019.
  35. "Committee Says VFS Monopoly at Home Affairs Is Indefensible". Parliament of the Republic of South Africa.
  36. Hunter, Murray (1 August 2013). "Australian Immigration – the Snowden Link?". Dissident Voice. Retrieved 30 March 2015.
  37. ^ "Make sure your UK Visa Application is not refused because of VFS". Thaiscare.com. Archived from the original on 7 February 2012. Retrieved 28 September 2019.
  38. ^ Donnelly, Lynley (27 June 2014). "Visa Services Under Investigation". Mail & Guardian. Johannesburg. Retrieved 26 September 2019.
  39. ^ Statement of VFS representative before the European Parliament (PDF), Brussels, 10 July 2018{{citation}}: CS1 maint: location missing publisher (link)
  40. Onyeji, Ebuka; Ayitogo, Nasir (14 May 2018). "How visa processing firm, VFS Global, 'extorts', 'mistreats' Nigerians". Premium Times. Abuja, Nigeria. Retrieved 26 September 2019. {{cite news}}: Invalid |ref=harv (help)
  41. "VFS Global is rated "Bad" with 1.5 / 5 on Trustpilot". Trustpilot. Retrieved 13 September 2019.
  42. "VFS Global Reviews - 1.9 Stars". SiteJabber. Retrieved 13 September 2019.
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