September 10, 2004Economy

Data privacy as cyber-protectionism

The Economist has an article on how data privacy concerns are being used as yet another bogey against outsourcing to India. However, Indian outsourcing companies consider themselves better than their Western counterparts in this area, but find themselves having to answer for things beyond their control.
This is an archived blog post from The Acorn.

Given the amount of outsourcing to India, there have been remarkably few security scandals. In a much-publicised case last year, a woman in Pakistan, working remotely for a medical centre in California, threatened to post confidential patient records on the internet if she was not given a pay rise. (The whole point of Pakistan, of course, is that it is not India. But it is close enough to worry some.) This year Wipro Spectramind, an Indian call-centre firm, caught some of its workers making unauthorised offers in phone calls marketing services for its client, Capital One, an American financial-services firm.

In the areas of biggest concern to banks and their customers,-card fraud and identity theft—there have been few reported incidents, and these have been small. At ICICI OneSource, for example, Raju Bhatnagar, the chief operating officer, says that there have only been two incidents of credit-card abuse, involving the theft of, respectively, $13 and $22. [Economist]That’s one more reason why the they are people like us’ line taken by some Indian lofty-softies does not really help.



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