The Hindu Business Line : 'Security, data protection vital for outsourcing'

THE domestic IT services and business process outsourcing (BPO) companies need to lay special thrust on Internet security and data protection laws to continue to sustain global competitiveness as security has become a key issue while outsourcing to Indian services firms.

The Head of Hyderabad operations and Senior Vice-President of Polaris Software, Mr Kedarnath H. Udiyavar, has said that the focus has shifted from physical security to risk management in information security where confidentiality of information has become a crucial issue for businesses. The basic challenge is to provide the necessary security and data protection while extending access to employees and clients. While the number of users goes up constantly with Internet access, the challenge is to devise systems that meet security and data protection requirements. The increased usage of wireless networks has added to this challenge of providing necessary security.

Differentiating between information and data, Mr Udiyavar said for a company in London handling personal information of a celebrity, it becomes vital information, and if leaked it could cost several millions. But when outsourced, it is just data.

In fact, it is safer to outsource to some company in India, provided the company has in-built security systems. Indian firms have been known to thrive in cost arbitrage. They have to face the situation of balancing escalating costs for security and data protection while providing services.

The Director of Software Technology Parks of India-Hyderabad, Col. M. Vijay Kumar, said there was growing awareness among Indian companies about the need to create the necessary security frameworks as also ensure data protection. The President of FAPCCI, Mr O.P. Goenka, said, "A CII-PWC information security survey found that 41 per cent of Indian enterprises do have a comprehensive security policy in place. This was indeed a sharp increase compared to a figure of only 17 per cent from the previous year's survey. The data security market estimated at about Rs 240 crore last year is set to witness rapid growth with companies laying special thrust on security and data."

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