Date:27/08/2004 URL: http://www.thehindubusinessline.com/2004/08/27/stories/2004082701500700.htm

Back To address data protection, privacy concerns — Nasscom offers security audit for members

Our Bureau

New Delhi , Aug. 26

IN the backdrop of data protection and privacy concerns raised by firms in the US and Europe, the National Association of Software and Services companies (Nasscom) has decided to facilitate and audit security practices of its 860 members.

"The issue is how do member companies adhere to data security standards and implement best practices. We will facilitate and audit security practices of our member companies although it will not be mandatory," said Mr Sunil Mehta, Vice-President, Nasscom.

Mr Mehta said that while the larger companies adhered to security standards like the British BS7799, Nasscom's latest initiative would enable small and medium players to undergo security audits at affordable rates, also providing a "feeling of assurance" to overseas clients.

The standards would cover aspects such as information security, physical security, network security and employee security.

Citing instances where companies providing financial and accounting services to US clients had to comply with Sarbannes Oxley Act, Mr Mehta said, "We will also look at compliance with various industry specific regulations."

The overall idea is to ensure that business process outsourcing and IT companies in India adhered to best security practices across the world.

Elaborating on the approach, he said Nasscom, in consultation with the experts from industry and academic institutions, would design the standards for data security and compliance with data regulations, and the member companies have the option of being audited by consultants.

"We feel that the audit would give Indian companies a competitive edge. We also expect that there will be substantial pressure from the customer side to go through this process," he said.

He said that the initiative is expected to be implemented in three to four months.