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India to get tough on foreign data security
Audits and background checks proposed

By Jo Best

Published: Wednesday 25 August 2004

Indian IT body Nasscom (National Association of Software and Services Companies) has announced it is to examine its 860 member companies' security as businesses looking to outsource to the country express fears that data-protection practices aren't stringent enough in the country.

India currently has no data-protection standard similar to those found in Europe, leading some - including a group of Labour MEPs and trade union Amicus - to demand that the EC stretch the data-protection law to UK data held overseas, raising concerns over how secure UK citizens' data is once it's transferred to the subcontinent.

According to the Financial Times, the audit will be completed this year and managed by consultants such as PwC and Ernst & Young.

With software development and outsourcing earning India $12.5bn last year, allaying any concerns over security is paramount. Last month, Nasscom also mooted plans to launch employee background checks to allow companies to research the history of potential new hires.

Nasscom is also holding an Information Security Conference in November in conjunction with the IT Association of America.