Insecurities of outsourcing to Indian BPO Companies

Indian BPO’s are in the limelight once again – Australian Broadcasting Corporation TV has claimed an illegal sale of personal information of thousands of Australian customers by Indian BPO workers. The news is spreading like wildfire and I expect to see a spate of articles warning us of the security risks of offshore outsourcing.

While it is true that information security is a concern, this has almost nothing to do with offshoring. There are security risks everywhere – even in your own organization! Infact the US Department of the Treasury labeled a New Jersey cybercrime case as the largest breach of security in the US where the number of bank accounts accessed illegally has grown to 6,76,000, according to police investifators. So the issue isn’t really about outsourcing but of security.

The recent Indian BPO fraud cases need to address the problem of people, not corporate or national boundaries.

Indian BPO companies have begun to train their staff on cyber ethics with an emphasis on cyber law education. NASSCOM (National Association of Software and Service Companies) is also taking serious measures to introduce amendments to the Indian IT Act for information security and cyber crime.

Here is an excerpt from a recent NASSCOM Statement on ABC Reportage:

“The problem is not unique to any single nation – it is one that affects us all – and each of us has a responsibility to take on the criminals. This problem, unfortunately, is unlikely to diminish as the world becomes increasingly interconnected and warped, criminal minds are likely to outpace technological solutions. ”

“Each of our IT and BPO member companies should adhere to the highest global standards in data security and privacy. Each of our customers must perform strict due diligence on all their vendors and ensure contractual commitments to relevant laws. India, with its strong legal system and its independent judiciary, is a country that takes this responsibility extremely seriously. ”

“Indian IT companies undertaking work for global companies contractually comply with all the requirements of the relevant privacy and data protection laws of the home country, as well as other security and confidentiality safeguards. But the industry is determined to raise standards even further.”

So lets face it, Indian IT & BPO companies are aiming to set the very highest standards – even in security. While it is harder to impeach across national borders, the prevention in security risks is more contractual than criminal.