Data privacy clarifications bring relief to IT BPO

August 26, 2011: The authorities of Indian IT department recently issued clarification on new rules and regulations relating to consumer data use, which was announced few months before. The global players with operations in Indian found the clarification quite useful as it could relax the pressure imposed on them in collecting the direct consent of their clients before using them for their operations.   

The Government of India issued data privacy rules and regulations in the IT industry earlier in the month of April following Identity theft occurrences in Indian IT and outsourcing companies. The implementation of new rules intends to reduce the risk factor of identity theft prevailing in the IT.

The law imposed earlier stated that the companies should maintain a privacy policy by which it has to make clear that the data and personal information of any client or customer collected must be done only after the proper consent of each and every individual. Global companies found this very difficult, time consuming and costly as well.

The revised rule which states that the additional consent is not required in working with the personal information and database of one’s own customer brings in huge sigh of relief. The clients can now impose their own restrictions on Indian services providers in using the information and personal data of their customers. And service providers are liable to maintain security policies as per the need of their clients. This will make the clients more comfortable in striking business deals with Indian service providers and also in maintaining rules and regulations, convenient to them.

Imposing hard and cut rules might have a negative impact on the business in the sector. This revision makes it more flexible and widely acceptable. The latest decision on thinking differently and taking decision by understanding the pros and cons of the rules and regulations in the IT sector is much appreciable. It could be said that the early decision taken was without a proper study and understanding of the after effects that could emerge after imposing such hard and cut regulations.  

Now, it could be anticipated that the business in IT and BPO sector might increase due to these flexible rules and regulations. Indian BPO and IT sector is already growing by a good pace and they hold 37% market share of Global BPO revenue as per Gartner report. The revised restriction is a relaxation for the existing global players who may now think on making new business deals with Indian IT sector.  

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