IT Act 2000 was meant to provide a legal framework for information in the form of electronic records. Unfortunately, the Act is silent on the issues of privacy, protection and regulated use of data. The law also does not cover data interception as well as computer forgery.

Opponents of offshore outsourcing to India have often cited the absence of data protection and privacy laws as a strong reason for stopping the movement of call-centre and BPO work to India. Labour members affiliated with the Amicus trade union in the UK announced in April that they would ask the European Commission to protect British consumers whose personal data is being transferred to India, warning that offshore outsourcing is “an accident waiting to happen???.

On the other hand a report published by the Financial Services Authority of UK stated that the security at Indian centres is very good and in some cases more controlled than in the UK. Though this is comforting news to a certain level (credit for which should go to those organisations which are investing heavily in security-related standards) it is not sufficient from a customer’s perspective.

While India’s outsourcing industry is gaining recognition for the quality of services provided, few have robust security practices. To build client and end-customer confidence BPOs in India need to ensure adherence to data privacy and data security norms. This could be enabled through investments in standards like BS 7799 (the most widely recognised security standard in the world) and building significant control measures for data transmission, access, usage, storage and sharing.

http://economictimes.indiatimes.com/articleshow/1272240.cms