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Data Misuse in Offshore Outsourcing Work in India
As a growing number of companies seek more centralized and less expensive methods of processing information they turn to offshore outsourcing to fulfill many of their business and human resources processes.
India has been tremendously successful in grabbing a significant share of offshore BPO. A significant amount of data is being processed in India. But recently their have been allegations that call centre employees in India have stolen data outsourced to Indian service providers. The concern is for remedies that non-Indian companies may have in India in event of breach, either to seek recourse against the offender or to prevent the event of misuse of data.
Remedies
Preventive Measures
NASSCOM (National Association of Software and Service Companies), one of the most recognized and vocal trade organization in IT software and services in India has put several measures to address data security concerns regarding service provider employees.
1. It has set up the National Skill Registry for IT professionals to conduct background checks on employees by tracking such information about employees such as employment history. More recently NASSCOM announced plans to set up independent self regulatory organization to set and monitor data security and privacy “best practices” by outsourcing service providers in India.
2. Service providers in India are increasingly adapting compliance programmes and comprehensive security audits including personnel and equipment audits to put specific checks in place to prevent misuse of sensitive information and data. Compliance programmes include training to employees to enhance awareness of confidentiality and training for computer system managers with regard to securing computer systems, common threats to information security, access control techniques, risk assessment and management, intrusion detection, authentication and other similar issues. Enforcement agencies also work with BPOs to conduct workshop to enable employees to improve knowledge and skills to prevent and prosecute misuse of data.
What can offshore companies do?
Laws Relating to Data
Though there is no omnibus Indian Data Security Law, there are several laws applicable to data theft or misuse. The Indian Penal Code, 1860 (IPC) is equipped to deal with theft, cheating criminal breach of trust, dishonest misappropriation of data and/or Criminal Conspiracy while Information Technology Act, 2000 can deal with hacking. The offenders can be arrested without warrant and the arrest can be a non–bailable one. The punishment ranges from one year’s imprisonment to life imprisonment. In case of employees of a BPO, public servants, merchants, attorneys or agents the penalties are higher. For example, if any employee misuses the data for personal gains the punishment is seven year’s imprisonment and in case of public servants, merchants, etc., it can be life term.
Indian government is eventually amending the ITA, 2000 to deal with data privacy and security issues. It is under review by Ministry of Law, Justice and Company Affairs. There are provisions to empower the Central Government to make rules concerning control process and procedure to ensure adequate integrity, security and confidentiality of electronic records and rules prescribing modes of encryption for data security.
Drawbacks
Indian courts are overburdened with litigations. There are many cases remaining pending and an average case can take years to be resolved.
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