Lack of privacy laws in outsourcing a concern for EU, US
While outsourcing to India and other offshore locations from European countries as well as from the US is showing good growth, there is, however, an equal measure of concern in these countries regarding the lack of effective privacy laws in most of the low-cost destinations.
In a recent visit to India, Deloitte partner and global head (security and privacy services) Adel Melek said, “In the US, although there is an absence of a single federal law on privacy, each state has its own privacy laws which are extremely strict. In Europe, it is even stricter. They even tell you which particular technologies to use to encrypt your passwords.”
Laws on privacy are primarily designed with the objective of protecting data, necessitated by the fact that hackers are causing increasingly more financial losses to organizations. More importantly, outsourcing is increasing privacy risks and the complexity of managing that risk.
