Legal Push To Boost BPO

New Delhi | Updated: Jul 23 2004, 03:13am hrs
The government will bring necessary amendments in the data protection and information security realted laws. The idea is to boost the confidence of business process outsourcing (BPO) industry in the world market and to keep anti-outsourcing lobbies silent on data security issues.

Within next few months, we will remove all the lacunae in laws covering the BPO industry, especially regarding data protection, to inspire confidence among investors, department of information technology (DIT) secretary KK Jaswal said. He was addressing a seminar on the Law of Business Process Outsourcing (BPO) organised in New Delhi on Wednesday. Mr Jaiswal also released a book on BPO laws, authored by Supreme Court advocate Pavan Duggal.

A legislative initiative is on the anvil and the amendments, filling all the gaps in the existing laws dealing with the sector, will silence the critics, Mr Jaswal said, pointing out that the governments intention was to provide all help, systems and an enabling environment for inducing further growth to the BPO industry.

Since BPO is the fastest growing segment in the ITES industry with an export turnover of $3.6 billion in 2003-04, there are many detractors attempting to inhibit its growth by saying the laws dealing with the sector are inadequate, he said.

National Association of Software and Service Companies (Nasscom) president Kiran Karnik also addressed the seminar and highlighted the importance of law impacting the entire process of business process outsourcing.

He said that data privacy, network security and intellectual property rights are the biggest challenges facing BPO industry.

The laws covering BPO need to be strengthened with cases of misuse of data, identity thefts and hacking coming to light he said, adding that BPO industry should follow practices which are reliable and superior in quality.