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Indian BPOs: Scandals and the Aftermath


Code : GOV0025B

Year :

Industry : IT/BPO

Region : India

Teaching Note: Not Available

Structured Assignment : Not Available

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Recent Developments A lot of activity was witnessed in the industry, with most of the India centric as well as foreign MNC players looking to consolidate. The acquisition of FirstRing4 (2003) and Account Solutions Group (2005) by ICICI One Source, Transworks5 by the Aditya Birla Group’s Indian Rayon (2003) and Daksh6 by IBM (2004) were some examples of small Indian companies being swallowed by bigger players in the market. A lot of Indian companies also acquired specialized BPO companies abroad...

BPO: Scandals and Implications BPO companies were plagued by data privacy and security concerns since their work involved transfer of susceptible and classified information across countries. Anti-outsourcing elements cited this very reason of ‘data privacy and security’ to curb outsourcing to India. Companies in the U.K. and the U.S. were under ever-increasing stress from legislations, on assuring the privacy of their customers’ financial and medical data...

Information Technology Act 2000 The IT Act 2000 was meant to be an e-commerce enabling legislation. The act covered the following offences: damage to computer source code; hacking; publishing obscene electronic information; publishing digital signature certificates with false particulars; publishing digital signature certificates for certain fraudulent purposes; and breach of protected systems. This law only defined “data” in electronic form in computers, computer systems and networks. Karan Bahree’s case was a typical case which was not covered under the IT Act...

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NASSCOM NASSCOM was working with the government to ensure that India’s data privacy and protection laws were more in line with the laws in the U.S. There were plans to set up a regulatory body to monitor data security and data privacy. NASSCOM was also in the process of setting up a national registry for BPO companies, to organize the industry and to build up a database of employees that would be certified. The objective was to build up a structure in which employees willingly allowed information about their educational backgrounds and employment histories to be entered into a database...

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