Is Your Data Safe with the Offshore Service Providers?
“Some of the service providers that I have visited have invested a lot of time, effort and money in data security. However, there is still a factor of risk associated with offshoring that will be overcome only with time”, according to a Managing Attorney from a New York based law firm in response to a query on whether buyers have adequate confidence in data security initiatives of offshore service providers.
In spite of the fact that India has enacted legislations such as the Information Technology Act, data may not always be tamper-proof. This is an area of concern for the buyers of outsourcing services as well as for service providers. With significant increase in offshoring, clients as well as service providers are realizing the need for security/privacy around data that is being processed at the offshore location.
Is data security and privacy a valid concern? The reality is that India, at present, does not have stringent data security/protection laws. Efforts are under way to change this scenario with the Indian government and apex bodies like NASSCOM coming up with various solutions to dispel fears of companies looking to outsource.
On the other hand, several preventative measures are put into place by leading offshore legal service providers themselves to deal with data security and privacy issues. Most of the leading offshore legal service providers comply with ISO 27001 – a global standard that covers all domains of security. Service providers including Mindcrest, Integreon, Pangea3, CPA Global and QuisLex have comprehensive security systems in place with certifications such as Safe Harbor Act, UK Data Protection (DPA) Act etc. These players are according greatest priority to security, and are at par with the companies in the US and UK in terms of data security. Some of the service providers also have security awareness programs that discuss the context of security in business and that of customers. This covers the consequences of breaking the security policy, confidentiality agreements, security policies and procedures, etc. However, the level of data security adhered by the larger players is not yet followed by the mid-size and smaller players. Unless other smaller providers gear up to provide this level of data security, the industry as a whole will find it difficult to gain the buyer confidence.
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