India is creating a regulatory body to improve security at outsourcing companies.
The country has been stung into action by newspaper exposes in the western press about alleged data security lapses affecting customer data of companies that have outsourced their call centres to India.
The new security initiative has been led by Indian IT trade association Nasscom. With India now facing stiff competition from other offshore locations, such as China, Nasscom is determined to allay any fears about data security processes in India.
Nasscom said the statutory body would set privacy and security standards for customer data, and monitor member companies to make sure they met those standards.
If companies fail in these areas, law enforcement agencies could be brought in.
The statutory body will be independent from Nasscom and will have its own chief executive officer and management board.
The organisation will also have its own membership, with membership fees paying for its running costs. The search is currently on for a CEO to run the body.