There is no specific privacy or data protection law presently in India. To create confidence among foreign companies and investors, who send data to India for back-office operations, it is becoming increasingly important to have a specific law for data protection. There is an urgent need to have in place appropriate statutory mechanisms, which work speedily and efficaciously in cases of breach of data. Relying on contract law to protect data does not work satisfactorily. The winds of change are blowing and in the next few years Indian data protection law is likely to change dramatically. An attempt is made in this paper to raise vital issues relating to data protection laws in general and the outsourcing industry in particular with an Indian perspective. This paper discusses the implication of transfer of personal data in the age of trans-border information technology. The paper examines various international and national data protection laws and challenges to be faced.
