New Indian Data and Privacy Rules May Impede Customer Facing Outsourcing Activities, Says Pace Harmon

VIENNA, Va., June 22, 2011 – With the Indian government recently issuing some of the most stringent data privacy regulations to date, Pace Harmon—a leading outsourcing advisory firm—has released a report outlining the primary effects of these regulations on enterprises and their relationships with outsourcing providers and customers.

The report, titled, “Indian Privacy Rules: Market and Customer Impacts,” specifically discusses the Information Technology (Reasonable Security Practices and Procedures and Sensitive Personal Data or Information) Rules’ provision requiring written consent from every individual prior to the collection of sensitive information.

“For enterprises that currently utilize customer-facing services from Indian outsourcers, the new regulations may create frustration, confusion and unease with the end-customer experience,” said David Rutchik, partner, Pace Harmon. “Collecting personal information now requires customers to fill out a form, which impedes and drags out customer communication. In some scenarios, service providers may have to divulge their identity to end customers—who may otherwise have believed they were speaking directly with the enterprise.”

Pace Harmon’s report offers insights regarding necessary changes to corporate processes, costs, and outsourcing contracts, and outlines best practices for accommodating the new rules and proactively communicating with outsourcing partners to examine and minimize operational impacts.

“While the regulations may help quell concerns over how Indian outsourcers handle data protection, it will likely add cost and complexity,” added Rutchik.

Pace Harmon’s clients include Fortune 500 and select high growth middle-market companies spanning industries such as Telecommunications, Health Care, Financial Services, Retail, Manufacturing, Technology, and Energy.

To access the full report, please visit For more information about Pace Harmon, please visit

About Pace Harmon
Pace Harmon is an outsourcing advisory services firm providing guidance on complex outsourcing and strategic sourcing transactions, process optimization, and supplier program management. Founded in 2003 and headquartered in Tysons Corner, Va., Pace Harmon provides pragmatic and insightful advice that helps its client base of Fortune 500 and other large enterprises maximize the benefits achieved from their mission-critical supplier relationships. For more information, please visit

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