October 29, 2005
Indian legislation proposal might remove accountability of BPOs for security of client data
The threat to client data in a BPO set up is an area of concern to outsourcing companies. The accountability for the security of such data was generally placed on the BPO company. However, the Indian government is considering a new legislation that might remove this accountability. According to this proposal, which is to be presented as an amendment IT Act, BPOs will be excluded from being a network service provider, and will thus not be held responsible for any theft of data.
The significance of this move is emphasized by the fact that India has no data protection law in place, although some countries have been calling for such laws extending over all service providers. Business Standard reports:
Experts said the exclusion of BPOs from the ambit of network service providers would mean that they would not be held responsible for the theft of any confidential information of foreign clients, like credit card or bank account details.
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