India's new data privacy rules could affect U.S. IT companies

Top Quote India recently issued new data privacy rules that impose considerable restrictions on how businesses handle personal information. End Quote
  • (1888PressRelease) August 01, 2011 - Sunnyvale, CA - India recently issued new data privacy rules that impose considerable restrictions on how businesses handle personal information. The Information Technology Rules, 2011 (Reasonable Security Practices and Procedures and Sensitive Personal Data or Information), or "Privacy Rules" issued in April, 2011 empowers the Indian Government to obtain sensitive personal information about individuals from companies without a warrant or the concerned person's consent.

    The Privacy Rules, which implement an existing law (India's Information Technology Act, 2008 and its recent amendment in 2008), can significantly affect businesses including multinational companies with back offices in India, IT and outsourcing companies in India, and foreign companies that contract IT and outsourcing services to Indian companies.

    Read more at http://www.nair-co.com/india-data-privacy-rules.aspx

    The new rules particularly affect outsourcing providers who may now need to notify people calling in at a call center about their data handling practices and to obtain consent to handle personal data. Companies may also need to ensure that their client's data handling practices match the requirements laid down in the new rules.  
    Read more at http://www.nair-co.com/india-data-privacy-rules.aspx
     
    Privacy Policy 
    Every corporate body, person or agent who collects, possess, stores, deals or handles information should have in place a privacy policy for handling and/or dealing in personal/ sensitive information. Such policy must be consistent with the Privacy Rules.

    Read more at http://www.nair-co.com/india-data-privacy-rules.aspx

    Disclosure of Data to Third Parties
    To safeguard the interests of data providers, the rules have prescribed that disclosure of sensitive personal data or information to any third party shall require prior permission from the provider of such information.

    Read more at http://www.nair-co.com/india-data-privacy-rules.aspx
     
    Transfer of Data
    Transfer of sensitive personal data or information may be allowed only if it is necessary for the performance of a lawful contract or where the data provider has consented to such data transfer.

    Read more at http://www.nair-co.com/india-data-privacy-rules.aspx

    About Nair & Co.
    Nair & Co. provides an integrated solution in the HR, finance, tax, compliance and legal arenas making a company's overseas operations less risky, stress free and more strategic. It currently has 740+ client operations in over 50 countries with offices in U.K., India, China, U.S., Japan and Singapore. Nair & Co. was named among the top 100 outsourcing services providers in the world by the International Association of Outsourcing Professionals (IAOP).

    Learn more at http://www.nair-co.com

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