Data protection is a vital aspect of business, especially in the outsourcing industry. Throughout the process of outsourcing, a lot of data – both common and sensitive – is exchanged between a service provider and its client. In a bid to get more finance and legal outsourcing projects, service providers in many countries are requesting their authorities to come up with a law that can assure the safety of data that is transferred by the client to the service provider to work on a project. The absence of a data protection law makes companies more reluctant to outsource their finance operations to offshore companies.
While some countries have existing laws related to data protection, some countries don’t. India, one of the most sought after outsourcing destinations in the world, also has a data protection legislation in place. In countries like Kenya, data protection laws are on the verge of being developed. “A law on data protection has been held back because it was tied to the Freedom of Information Act. We expect both laws to be approved by the Cabinet in their next few meetings,” said Bitange Ndemo, permanent secretary in the Ministry of Information, Kenya.
In the wake of increasing business costs, are you looking to save valuable time, money and resources? Do you have lots of financial and accounting transactions and no one to take care of them? One sure short method to find a solution is to outsource your finance and accounting operations to an offshore service provider. If you are already contemplating this, you are just about to make the right decision.
According to a new report by Global Industry Analysts, Inc., the global finance and accounting outsourcing (FAO) market is all set to touch the $44.9 billion mark by the year 2015, primarily driven by the pressing need to cut operational costs.
Similarly, a recent report published by the Everest Group, a global consulting and research firm, states that the finance and accounting business in India is growing and stands at US$ 3.7 billion. It is further expected to grow by 20% this year!
Companies are increasingly seeking new ways to reduce costs, and everything from legal and HR services to healthcare and R&D are being outsourced. The decision to outsource business processes is a strategic business decision. In the current economic environment, companies are increasingly looking at opportunities to seal outsourcing deals with service providers that provide high-quality services at competitive rates.
While there are several benefits associated with outsourcing, it is interesting to know that outsourcing goals differ from company to company. It is important to follow some general guidelines to ensure that you get the best in your outsourcing endeavours.
While India has been and is one of the top few outsourcing destinations, the recent comments from the U.S. President, Barack Obama on outsourcing has left many Indian offshore companies blink in uncertainty. Obama’s new proposals to terminate tax breaks for American companies that ship jobs to offshore countries like India, has evoked mixed responses.
However, the Indian outsourcing industry is unfazed by Obama’s anti-outsourcing stand and sees it more as a protectionist and retrograde measure that will adversely affect the U.S. companies, rather than the Indian companies. Despite Obama’s anti-outsourcing policy, the $60-billion Indian IT and outsourcing industry is still slated to remain a top outsourcing destination due to its rich pool of English-proficient and tech-savvy professionals whose wages are way below their western counterparts. U.S. companies are likely to continue outsourcing jobs to India as doing so will save them a lot more money.