Data Protection Laws and Outsourcing


The recent ransom-ware WannaCry attack has everyone worried about information security yet again! As such, data security has been one of the biggest issues organizations fear when it comes to outsourcing data management. But with the latest data protection software and laws prevailing, a reputed and experienced data entry outsourcing company will offer totally risk-free data management services to each of its clients. Every business expects the outsourcing firm to ensure complete privacy and safety of its information whether in raw form or processed form. They assign data entry of products, customers, accounts, employees, stock, sales, and even pricing details to the outsourcing firm, Misplacing or leaking these information to a third party may even lead to the failure of the organization, especially when the critical information reaches its competitor.

When a parent company outsources its data solutions to an outsourcing company, data may be lost due to many reasons:

  • Inadequate security measures may lead to information leakage
  • Insufficient backups may lead to loss of information is the system fails
  • Database or server may be hacked if the security encryptions are insufficient and/or outdated
  • Malware or virus attach which may render the network weak

To ensure data security a legal contract is entered into between the parties – the customer who is the parent company and the outsourcing firm which is working on the data. The customer may be the actual owner of the information or might be entering the outsourcing contract on behalf of his/her customer. But as far as the outsourcing Data Entry Company India is concerned, the customer is the owner of the information and the contract should mention that all legal rights and intellectual rights of the information they are handling remain vested in the customer.

One common issue in outsourcing is that the parent company is located in one place and the outsourcing BPO Company is located elsewhere. This creates confusion as to which country’s law should be considered in case of a breach of contract, especially in the case of information security. Hence, details as to which country’s information security law will bind the contract should be clearly mentioned in the contract. Every country’s outsourcing laws clearly mention how it should manage its data especially while outsourcing. Similarly, the outsourcing country’s law will also have provisions to safeguard the customer’s interests who are paying for outsourcing their business processes.

Further, the parent company or the customer can check the security policy of the offshore data entry outsourcing services provider and insist upon periodic internal and external security audits. This also can be mentioned in the outsourcing contract and adequate measures can be taken to carry out the external audit by the parent company.

Choosing a reputed company which has proven records of experience is the best way to ensure information security in outsourcing. The reputed and experienced firms will never compromise with information security because they know its significance and the adverse effects it will have on the firm’s reputation which it built with painstaking effort over many years. That’s one of the reasons a reputed firm is the preferred outsourcing partner over newer firms even if the cost factor is competitive.

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