The global effect of data security compliance
In a global environment, it’s tough to gauge the immediate and far-reaching effects of something as basic as a data security regulation. However, with the EUs General Data Protection Regulation passed in 2016, they have made it clear that private data belongs solely to the owner and may not be shared or utilized without their knowledge. The legislation also addresses export of data outside the EU.
The biggest differentiator among competitors
Privacy and cyber-security are the two major factors that distinguish effective BPOs. Since the business runs on information, the onus of protecting all of it rests with the organization. In most cases, it’s not just about protecting the identity of individuals, but it’s also a matter of preserving data that are crucial to the profitable functions of industries around the world. Additionally, businesses whose main role is data processing also turn to BPOs for ancillary functions such as simple data storage and management due to cost concerns.
Ripples across the sea
The EUs latest rule has created a divide in opinion with some believing the effects will be greater than anyone can foresee.
Unsurprisingly, most agree that Indian businesses will bear the brunt of the decision. BPOs operate under strict guidelines and policies but their lifeline is the data they rely on. Whether it’s up-selling or cross-selling, numerous companies around the world have placed their customer support functions in the hands of Indian Outsourcing Companies.
Compliance requirements may befall companies that are not even operating with private information. They may liable to comply even if they only deal with another company that processes customer information. It is this grey area that has many executives worried about a butterfly effect.
With the looming deadline on May 25, 2018, organizations need to step up their cyber security objectives or risk paying hefty fines. Estimates put penalties in the ballpark of EUR 10-22 million.
When all is said and done, the law passed in 2016 gives individuals the power to check how and when their data is being used, and ask for it’s removal.