In India, new data protection legislation is proposed by the politicians with a view to club India with global outsourcing and relieving the fears of unprotected data in the country. But for the outsourcing companies, the new privacy rules are no less than a waste or a burden over the complete process. The new rules apply to the Information Technology Act of India aiming to increase the security by specifying the process of collection of private information from the people in the country and outside which is used by the outsourcing companies in India.

According to the new rules, outsource companies in the country have to have a written consent for the collection of personal data which will not only make the privacy laws of India more rigid but also increase the burden over the companies, as stated by Atul Vashistha who is the chairman of Pleasanton. California- based consulting firm Neo Group. These privacy rules will surely kill the entire Indian outsourcing industry that handle ample amount of sensitive and personal data from the western world, manage the sales, offer customer service, enter orders and many more. During this process, they have to struggle through huge swathe of private data like bank account information, password, medical records, credit card numbers, biometrics and others. And if the written consent is made compulsory, that will not help in lessening the procedure. Indian outsourcers will need a written permission from each and every person calling customer support, according to the new rules.

Having found violating these new data protection rules will make one liable for long imprisonment terms and will cost thousands of dollars as fine. Even the company directors are liable for penalties if found guilty. Up till now multinational companies and investors regarded data security laws of India faulty and outdated. But outsourcers say written consent will be an addition to the hefty process of reaching end customers. There is a lot of hustle and bustle for the new rules among them.

Nasscom will have a dialogue regarding the new rules with the government of India putting forward their point of view. There is a need to find way to logical or rationale rules for Indian Outsourcing companies to pacify. The new protection and privacy rules will only turn the Indian outsourcing into paper work oriented process which will be humdrum and less productive.