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9/7/2014

Data Privacy And Cyber Security Policies Shaping The Legal Outsourcing Landscapes In India

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D a ta P riv a c y A nd Cy b e r S e c urity P o lic ie s S ha p ing T he Le g a l Outs o urc ing La nd s c a p e s In Ind ia ( Save as .pdf )
Published : July 16, 2014 | Author : hitechlpo
Category : Cyber Law | T otal Views : 539 | Rating :

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D a ta P riv a c y A nd Cy b e r S e c urity P o lic ie s S ha p ing T he Le g a l Outs o urc ing


La nd s c a p e s In Ind ia

Many companies wanted to outsource legal support services to Indian offshore vendors,
but they were reluctant, there was an inherent fear that the sensitive data and
information, shared for business purposes, might be stolen or compromised.
D a ta P riv a c y R ule s

In 2011, Indias Ministry of Communications and Information Technology enforced new


privacy regulations under the Information Technology Act, 2000. These privacy
regulations were known as Information Technology (Reasonable security practices and
procedures and sensitive personal data or
information) Rules, 2011. The law was
brought into force immediately and
resulted in significant ramifications in the
way other companies did business in India.
The client advisory holds the review and
description of this law. This new law sent
across a message to the companies who
wanted to outsource services to India.

hitec hlpo
Legal professional having nearly
Six Years of significant
experience in LPO services.
Currently working as Manager
at Hi-Tech LPO and Having
comprehensive insight and
exposure to streamlining internal
procedures; quality control
methodologies; and broad areas
of project management.
Capable of handling
administrative functions and
sensitive projects effectively.
Result oriented and ability to
work as a team and get along
with clients and colleagues.
Having strong leadership and
organizational skills and ability
to handle work under pressure
to meet deadlines.

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This law, which was aimed at ensuring


improved data security, imposes both civil
View articles | Contact author
liability and criminal punishment if the
privacy of clients is breached. According to the law, no personal data or
information can be disclosed without a written consent from the client. It is
also necessary to disclose any resultant, wrongful gains or losses in a
contract. The laws in India are even more stringent than that in the west,

http://www.legalservicesindia.com/article/article/data-privacy-and-cyber-security-policies-shaping-the-legal-outsourcing-landscapes-in-india-1678-1.html

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9/7/2014

Data Privacy And Cyber Security Policies Shaping The Legal Outsourcing Landscapes In India

and if an Indian LPO fails to provide due security and confidentiality of


client data, it is considered as a criminal activity and the LPO Company is
subject to civil and criminal liabilities and sanctions.

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Initially when the law was enforced, several LPO firms feared that the
cumbersome formalities of getting a written consent from the clients
every time data needs to be availed, might be a deterrent and clients
might refrain from engaging an Indian LPO.

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However, these fears proved to be totally unfounded. T he collection


of personal data abroad by Indian companies will not come
under the new rules, because Indian companies will be
collecting this data on behalf of the customer who is abroad
and governed by laws in his country" quoted by Mr Kamlesh Bajaj,
CEO, Data Security Council of India. This means that data can be easily
and seamlessly shared between client and the legal support services
provider, however from this point onwards, any kind of data transaction, distribution, data leakage and theft of client
information is governed by stringent laws in India.

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Hello All, My father's are five brothers and
all are settled in West Bengal. We belong

In this scenario, it has become mandatory for Indian outsourcing organizations to be prudent when disclosing client
data or any other proprietary information of their clients.
Consequently, in last few years, the information technology industry in India has also grown in leaps and bounds.
Hence, enforcement of Cyber Security in order to protect the sensitive information that is shared online was the next
plausible step.
N a tio na l Cy b e r S e c urity P o lic y

In July 2013, National Cyber Security Policy was put in practice with an intention of curbing cyber crimes and improving
cyber security.
T he Policy Lists Several Actionable Items Like:
# Companies should be encouraged to designate a chief information security officer who is responsible for cyber
security
# Sensitive areas like cloud computing, social media and mobile computing should be made secure by developing
legal framework that addresses cyber security concerns across these platforms.
# Global collaboration and cooperation should be improved, in order to determine the best cyber security practices
and prevent data theft
# Higher level of development in cyber security measures should be encouraged, by promoting research, fostering
education and conducting training programs.
The then, Communications and information technology minster, in India, Mr Kapil Sibbalhad pointed out that putting
this policy into practice would be challenging. He also opined that it was imperative to make sure that this did not
cause any kind of disruption that destabilizes the economy.
This policy will not just affect the LPO sector but will also prove to be pivotal in catalyzing the growth of BPO, KPO and
the IT sector.
Future o f LP O a nd T he Gro wth P ro s p e c ts

Experts have predicted that the LPO industry will grow by 1.3 billion USD in 2015. According to a US based research
firm, Forester, Legal Process Outsourcing in India can bring around $4 billion in the next 10 years. The Indian LPO
market has grown 27.7% from 2010 to 2014 and is poised to become a major sector for outsourcing in the coming
years.
Every year the number of individuals graduating as professional lawyers is also exponentially increasing. More and
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9/7/2014

Data Privacy And Cyber Security Policies Shaping The Legal Outsourcing Landscapes In India

more law graduates are seeking jobs in India based LPO.


LPO organizations hence have a harmonious combination of seasoned lawyers who have experience by their side,
and the new age young law graduates who are technology savvy, proactive and fearless. Due to these advantages,
experts think that it is very tough for LPO organizations from other Asian countries to compete with the Indian
counterparts.
The potential of Indian LPO organizations is enormous and international law firms, corporate legal departments and
legal counsels are eager to tap these potential togain optimum benefits. Some of the most popular legal support
services outsourced to India include research support, eDiscovery services, contract drafting and revising, contract,
management, Litigation support and legal research to name a few.
To conclude, we can say that, now the overseas law firms and corporate legal departments are assured that there are
stringent privacy laws and cyber security policies governing the LPO in India.
As a result, Indian LPO organizations are increasingly attracting legal support work from overseas. Clients often send
across representatives to audit the LPO operational centers, and after due diligence outsource their requirements.
Often the association between a client and a LPO organization starts with a single project and moves on to a
strategically formed partnership that mutually benefits both the parties.
About Author:
Snehi Kumari is Legal Process Manager at HiTechLPO.com. Having comprehensive insight and exposure to
streamlining internal procedures; quality control methodologies; and broad areas of project management. Capable of
handling administrative functions and sensitive projects effectively.
Having strong leadership and organizational skills and ability to handle work under pressure to meet deadlines on all
litigation support solutions required.
Ref:
# trustman.org/legal-process-outsourcing-india-recent-trends/
# lawwithoutborders.typepad.com/legaloutsourcing/2011/07/indian-government-to-clarify-data-privacy-rules-affectingoutsourcing.html
# isrj.net/ArticleFullText. aspx?ArticleID=4339
# huntonprivacyblog.com/2013/07/articles/indian-government-releases-national-cyber-security-policy-2013/
The author can be reached at: sn e h iku ma ri@le g a lse rv ice in d ia . co m

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