As government tightens data rules, IT firms flag risks

BENGALURU: Indian IT and business process management companies such as Cognizant and Genpact are flagging risks related to the prospect of data protection policies in the country, saying it could impact their businesses and expose them to increased regulatory scrutiny.

India is considering a draft data protection bill that suggests critical personal data of Indian users held by digital and global firms be stored and processed only in the country. The draft was part of the recommendations made by a panel on data protection led by former Supreme Court judge Justice Srikrishna.

The suggestion has concerned global giants which say the cost associated with collecting and managing the user database will be considerable.