Data security top priority in BPO

Fear of fraud grows

Data security is seen as more important than employment laws in business process outsourcing (BPO) deals, a survey has found.

Ninety per cent of managers consider issues such as the protection of intellectual property rights, contract enforcement and data protection more relevant to their business than laws relating to the transfer of staff, according to new research from the National Outsourcing Association (NOA).

The top legal issues managers cited as important include the ability to enforce contracts with offshore providers (93 per cent), data protection that allows cross-border transfers (93 per cent) and technology transfer laws (83 per cent).

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Nigel Roxburgh, research director at NOA, said the increased publicity surrounding data security in offshoring, such as Channel 4's recent Dispatches programme revealing data theft in Indian call centres, has played a role in raising concerns.

Roxburgh said in a statement: "Outsourcing professionals are fully aware that allegations of fraud and data security problems can seriously damage a company's reputation and have a negative impact on its image and market performance."

The research, conducted for the NOA by analyst Nelson Hall, questioned more than 100 sourcing managers from end-user companies.