The Andhra Pradesh Government has asked the Union Government to come out with a Data Protection Act in order to get huge outsourced deals to India. Absence of data protection is hindering US and UK companies from giving certain outsourcing jobs to India.

“A comprehensive legal framework meeting the standards of the European Data Protection Act is a must for attracting captive and third-party outsourcing contracts to India,” Ponnala Lakshmaiah, the Information Technology Minister of Andhra Pradesh, said.

He wrote letters on Wednesday to the Union Minister for Communications and IT, Kapil Sibal, and his deputy Killi Krupa Rani, asking them to take measures to bring out a Data Protection Act.

The proposed legislation should ensure a detailed framework, adequate safeguards and appoint regulators to monitor the collected data and its usage. “India’s IT exports crossed the $70-billion mark, with significant contributions from the BPO (business process outsourcing) operations. But incidents of data theft and misuse of private information have raised concerns about outsourcing certain projects to India,” he said.

This, he said, had resulted in a bad image to the Indian outsourcing industry. “In my recent trip to the United Kingdom, the IT industry representatives had highlighted the problem and wanted India to introduce the Act,” he said.

(This article was published on November 21, 2012)
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