New Privacy Laws in India and China Could Make IT Outsourcing Ugly

[Newsjock]

Source: BNet

Think privacy issues are a pain when they affect consumers? Get ready for the grandfather of all corporate computing headaches. Big privacy-law changes in India and China are about to turn data-processing outsourcing into a hurdle-leaping, paperwork-generating mess.

... According to the lawyers, the new privacy rules (in India) seem to apply to any personal information, and not just that of Indian nationals. Some of the requirements are rigorous:

- A company must get written consent by letter, fax, or email for the collection of data.
- People can opt out at a later time and withdraw their consent.
- There are significant restrictions on disclosing personal data to third parties.
- When a person has given consent for the transfer of data, or it’s necessary by contract, a company can only send the data to an organization that provides the say level of security as the Indian regulations.
- People have the right to review their data and to correct it.

This will be a major challenge for Western companies that use Indian firms as back office processing centers. Expect to see companies bringing some degree of data processing back in-house again, as well as investigating new potential outsource locations in South America. Or until enough wealthy business owners complain to the Chinese and Indian governments about the amount of business they might lose.

Read more: http://www.bnet.com/blog/technology-business/new-privacy-laws-in-india-and-china-could-make-it-outsourcing-ugly/10620

[xchrom]

1. recommend

[Ian David]

2. So, let's start messing with their system until they bring our jobs back. n/t

[kickysnana]

3. About time. Nice they are killing outsourcing there when we cannot stop it here. n/t

[Tom Rinaldo]

4. Rich in irony

So now it seems laws protecting consumer privacy are stronger in India and China than in the U.S. which should result in job growth here where consumer protection regulations are weaker. Reverse outsourcing to avoid government oversight. Am I getting this right?

[Jkid]

5. Unless they lobby their governments first to keep their business...

[Duer 157099]

6. This can only be good news n/t