Synopsis
The Rise of Moonlighting in Tech
The recent case of software engineer Soham Parekh, who was outed by Mixpanel co-founder Suhail Doshi for “moonlighting across multiple startups and scamming employers,” has highlighted the growing issue of moonlighting in the tech industry. This phenomenon, where individuals work multiple jobs without disclosing their dual employment, has become a sophisticated and high-stakes risk that even experienced and high-profile professionals are engaging in.
Characteristics of Moonlighting in Tech
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- Often involves skilled professionals who appear credible and talented
- Can be done without detection due to the speed, informality, and trust-based culture of tech organizations
- Raises concerns over data confidentiality, GDPR compliance, and IP protection
- Can lead to financial losses, data breaches, operational disruption, and reputational harm
Why Moonlighting is a Growing Concern in Tech
The lack of clear contractual terms and the absence of robust or standardized employment contracts in tech companies have created an environment where moonlighting can thrive. This is particularly true in sectors where Indian tech firms work in the US or European markets, such as SaaS, fintech, or healthtech.
Consequences of Moonlighting in Tech
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- Financial losses for companies
- Data breaches and IP protection issues
- Operational disruption and reputational harm
- Loss of trust and integrity among employees and clients
Preventing Moonlighting in Tech
To prevent moonlighting in tech, companies need to take proactive measures. This includes:
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- Screening behavior, not just skills
- Employing robust employment background checks
- Defining employment terms and policies
- Striking a balance between remote and in-office roles
- Protecting IP and data
- Implementing digital tools and advanced verification technologies
- Establishing clear policies and procedures
- Sanctions frameworks to prevent and detect unwarranted moonlighting activities
Conclusion
Moonlighting in tech is a serious issue that can have significant consequences for companies. By taking proactive measures to prevent moonlighting, companies can protect their sensitive data, uphold client trust, and maintain productivity. It is essential for tech companies to prioritize robust employment contracts, digital tools, and clear policies to prevent and detect moonlighting activities.
Author Note
The opinions expressed in this article are that of the writer. The facts and opinions expressed here do not reflect the views of The Economic Times.
| Company | Position | Name |
|---|---|---|
| EY | Global Markets & India Leader, EY Forensic & Integrity Services | Singh |
| EY | Technology Sector Leader, EY | Bhatt |
“I believe that the key to preventing moonlighting is to establish clear policies and procedures that are communicated to all employees. It’s not just about having the right tools, but also about having the right mindset and culture within the organization.”
— Singh, Global Markets & India Leader, EY Forensic & Integrity Services
Disclaimer: The opinions expressed in this article are that of the writer.
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