India to amend data protection laws: NASSCOM

By agencies   |   Monday, 19 December 2005, 08:00 Hrs
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BANGALORE: India is to beef up laws protecting data that international companies entrust to local outsourcing companies, the apex body of the information technology NASSCOM said.

The Indian Penal Code and the Information Technology Act will be changed to better define crimes and prosecution methods involving misuse of data such as customer profiles, business secrets and patented technologies, the association’s President Kiran Karnik said.

“We understand that the amendments are to be tabled before Parliament in the session starting next February and the move was expected to pass without opposition,” he added.

India controls 65 percent of the global market in software-code outsourcing and 46 percent in back-office outsourcing. A handful of data thefts and credit card frauds in outsourcing companies raised concerns over the effectiveness of existing laws. The Government set up an expert committee, included NASSCOM, to suggest stricter provisions. The panel made its recommendations in August.

Karnik said, “Indian laws are already powerful against data thieves, but these amendments will remove some ambiguities.” Earlier this year, NASSCOM also started recording work histories of outsourcing employees to ensure data thieves can't apply for new jobs.

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