Business
BPO Sector Exempt from Data Rules
The $14-billion Indian BPO industry has been exempted from tough new data protection rules introduced by the government.
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The new Section 43A of the Indian IT Act requires companies to secure written permission from each client before collecting sensitive information about them.
After BPOs that collect credit card and financial information from foreign customers lobbied the government, it clarified that the new rules won’t apply to outsourcing providers located in India. Instead, BPOs located in India will be governed only by specific contracts signed with their global and Indian customers.