The Indian Data protection law, which was introduced last month, has created uncertainty in the outsourcing sector and clarification is needed on a rule that could create a burdensome business process.
Although it is being welcomed, the outsourcing industry wants clarification on the finer details.
The law, the Information Technology (Reasonable Security Practices and Procedures and Sensitive Personal Data or Information) Rules, 2011, was introduced last month. There have been fears that an article within it, that states that processors of data must gain consent from the person the data is about, will be over burdensome.
The new rule is section 43A of the Indian IT Act. According to the Times of India it states “that a corporate shall have to obtain permission through letter or fax or email from each client before collection of sensitive information. Thus, BPOs will have to inform the client regarding purpose of usage before collection of such information, if they go by the new IT rules 2011.”
This would create additional work and potential hurdles for Indian suppliers obtaining consent from the customers of their clients.
via UK legal profession cetain of uncertainties of Indian data protection law – Inside Outsourcing.
