Companies that outsource data processing or other back-end operations to India should be aware of a sweeping change in the country’s data privacy rules that, in the worst case, could put notice-and-consent burdens on businesses so onerous that they might prod companies to reconsider why they’re outsourcing to India in the first place.
“This is a major development, particularly for companies that outsource to India where the business involves sensitive personal data as defined by this law,” says Heather Egan Sussman, a partner in the law firm of McDermott Will & Emery. “There are some provisions in this law that may make it difficult to proceed with business as usual.”
