Could India's data protection law be remedy to lingering corporate doubts?

The growth of India as a destination for offshore IT services has been astonishing.

When the millennium bug approached in 1999 western businesses wanted low cost software companies to help the services of Indian software firms as low cost remedy to the problem that computers were not programmed to cope with the date change.

Before then Indian companies were just seen as mainframe maintenance firms. But once in the Indian companies have spread into all sectors and moved into every Enterprise technology imaginable.

Read this blog post about how Western IT firms allowed the Indians to take hold.

But despite the success of Indian IT services firms there has always been one fear that has, believe it or not, held the Indian companies back. This is the lack of data protection law in India.

“Although not having such a law until now has not of course stopped a lot of offshoring to India, the lack of it has been a major source of concern, both for European customers and for the Indian IT and outsourcing industries,” says Mark Lewis, head of outsourcing at law firm Berwin Leighton Paisner.

But India has now enacted such a law.

Here is an article about it. It appears to be getting mixed reactions. I am hoping to get some expert legal comment on this so watch this space.