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Outsourcing to India

By Miriam Wugmeister and Alistair Maughan
November 17, 2006

As a growing number of companies seek more centralized and less expensive methods of processing information, they are turning to offshore outsourcing to fulfill many of their business and human resources processes. Given India's success in building a significant share of the offshore business process outsourcing ('BPO') market, a significant portion of the data is now being processed in India. Recently, there have been allegations that call center employees based in India have stolen data outsourced to Indian service providers. Regardless of whether these allegations represent a trend or are just dramatic headlines, there have been concerns raised about the security of data held by Indian service providers, and the remedies that non-Indian companies may have in India in the event of a breach, either to seek recourse against the offender or to prevent the misuse of data. This article describes some of the remedies that are available to companies to deal with and prevent the misuse of data in India.

Preventative Measures

In the wake of concerns around data security and privacy in India, the National Association of Software and Services Companies ('NASSCOM') (www.nasscom.in), one of the most recognized and vocal trade organizations in the information technology software and services industry in India, has put in place several measures to address data security concerns regarding service provider employees. Earlier this year, NASSCOM launched a National Skills Registry (www.nationalskillsregistry.com) for information technology professionals to help employers conduct better background checks on employees by tracking certain information about employees, such as employment history. More recently, NASSCOM announced plans to set up an independent, self-regulatory organization to set and monitor data security and privacy 'best practices' by outsourcing service providers in India.

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