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Will rising data theft pull down the BPO industry?

Kuldeep Tiwari / DNA
Thursday, October 29, 2009 8:36 IST
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The problem of data theft faced by the business process outsourcing (BPO) companies in Ahmedabad may prove to be detrimental to the industry in the long run. According to industry experts if BPO owners fail to check such data thefts it will lead to huge losses and even force them to shut shop.

The issue has been plaguing the industry for some time now and has again come into focus after an employee of FGMB-MB Services Ltd, a BPO allegedly stole data from the company and sold it to its rival.

Industry insiders feel that such thefts often sound the death knell for many budding BPO/KPO enterprises. Industry sources said that the trend also hinders the growth of the information technology and BPO industry inthe city. CEO of Hi-Tech Outsourcing Services, Pranit Banthia, said "These kind of incidents are highlighted by the foreign media. This can turn away potential future clients and jeopardise the business of city
"For a city like Ahmedabad, where the BPO, KPO and IT industry is still in its nascent stage and trying to take on biggies from other states, it can prove to be a serious setback which may severely hurt the industry," said Banthia.

Those in the field say the cyber cell of the police department also needs to keep itself abreast about the latest trends in technology and cyber crime. "Similarly the laws should severely punish those found guilty," said an expert from the industry who did not wish to be named. Parul Mehta, co-founder of Motif Inc, an Ahmedabad-based BPO said

"Apart from the police, the companies also need to be vigilant about protecting their data and maintaining discipline so as to avoid such incidents." "In many cases, the companies are not willing to spend money to secure and protect their data. This makes the job easy for those looking to steal data," Mehta said.

Jaimin Shah, director of Dev Information Technology said "Often when the clients' (foreign companies giving business to a local BPO) data gets leaked it affects the image of the local BPO. This not only leads to loss in business but also loss in employment."

Gujarat Electronics & Software Industries Association (GESIA), Nirav Shah said the annual export of the IT, BPO and KPO industry is around Rs1200 crore. This also includes small and medium scale players. "The industry's growth rate is expected to be around 10-12% for this financial year compared to 30% last year. The BPO owners need to be more cautious about the safety of the data," said Shah.

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Readers' comments:
It's an interesting, informational and alerting blog. Very active steps should be taken against all the guilty workers.
Friday, November 6, 2009 3:19 IST
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