InformationWeek’s Paul McDougall shares a fascinating rundown on how Morgan Stanley agreed to sign on Wipro for IT services in exchange for having the chance to act as lead underwriter in its New York Stock Exchange listing.
In "Morgan Stanley E-Mails Reveal Outsourcing’s Dirty Little Secret," McDougall calls this kind of arrangement "pervasive throughout the outsourcing/financial services industries." He points out that this doesn’t make for good business. What if your company doesn’t need the services it’s trading a contract for?
