The aim of this latest initiative from Nasscom, the public body that represents outsourcing organizations based in India, is to demonstrate that, despite reports to the contrary, India (and its provider companies) is one of the safest offshore destinations open to organizations. There have been reports on the front pages of UK newspapers about individuals selling private data to reporters, and this, combined with other scandals, has encouraged Nasscom to act.
There is no doubt that setting up this new body by Nasscom has been undertaken with a glance over its shoulder at the rising popularity of alternative offshoring destinations such as China – India is well aware that it currently has the largest offshoring market share of IT outsourcing (ITO) and business process outsourcing (BPO) business, but China is indeed snapping at its heels, and India must do what it can to stay ahead.
In terms of strength, India’s IT industry is now the world’s 10th largest, and continues to increase rapidly. Some of India’s software companies have become international powerhouses – best known are Tata, Infosys, and Wipro, each of which have well over $1 billion in annual revenues.
The (as yet unnamed) self-regulating body will set standards for privacy and security, and will check that its members adhere to the standards that they have signed up to. Although Nasscom will set up the body with initial funding of $300,000, it is expected that it will eventually become a self-funding and separate body.
According to reports, over 1,000 companies (representing 98% of the Indian IT industry) have agreed to become members of the new body. The search is now on by Nasscom for a CEO to spearhead the new organization, and it is expected that its launch as separate from Nasscom will take place in the next six months or so.
This is indeed good news for Indian ITO and BPO service providers – and not just for the aforementioned Tata, Wipro, and Infosys – the smaller providers will welcome this development as well. Concerns over privacy and security were becoming significant barriers to trade, and although many offshore ITO and BPO provider companies have their own compliance initiatives in place, they were not enough to convince many potential clients.
By being members of a self-regulating body that is seen to address any cases of non-compliance with its own standards (a crucial aspect), potential customer organizations may just have their worries regarding data security and privacy in India alleviated to a greater extent.
Source: OpinionWire by Butler Group (www.butlergroup.com)
