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.

According to analysts, banks and similar companies fear litigation that could come with disclosure of customer information, when outsourcing. They believe that even with the presence of a robust data protection law it is risky to outsource banking operations which include sensitive data. According to an international Information and Communication Technologies (ICT) consultant, companies in countries like the U.S.A. refrain from outsourcing projects that contain business-critical data as they fear data leakage.

Source:http://www.flatworldsolutions.com/blogzone/?p=101

Computer firm Dell is planning to revolutionise its supply chain by transferring huge numbers of shipments from air to ocean, according to new reports.

The Journal of Commerce reveals that the firm, which pioneered the build-to-order business model, is planning a “fundamental change” in its logistics strategy which could “set a touchstone for distribution in the technology sector”.

“Dell’s diversification from strictly direct-to-consumer sales to include more retailers has led to increased outsourcing and a recent announcement to begin to move from costly air to slower ocean freight.

If it is successful the practice will likely become more common, as the company strives to compete with rivals such as Hewlett-Packard, which replaced Dell as the world’s No. 1 computer maker and relies heavily on ocean shipping,” the Journal of Commerce stated.

However, the publication went on to caution that shift in Dell’s core supply chain management business model comes with risks – damage, order cancellation, product value decline during shipment – as well as higher inventory carrying costs: “Dell’s inventory turns – a formula dividing the cost of goods sold by its average quarterly inventory – are its shining star and one that stands to fade with a longer supply chain,” it noted.

Source:http://www.procurementleaders.com/news/latestnews/1711-dell-plans-change-logistics/

Information technology spending in India will grow by 14 percent in 2010 to $67 billion on higher investments by retail and utility firms and government departments, research firm Gartner said on Wednesday.

The IT market in India, including computer hardware, software, IT services and telecoms, will rise to about $89 billion in 2013, posting a compounded annual growth rate of 11 percent from 2009, it said.

“As IT buyers expand and mature and consumers increasingly understand the benefits of IT, acceptance of technology will increase, leading to further IT market growth,” Gartner said in a statement.

India’s leading outsourcing firms such as Tata Consultancy Services and Infosys Technologies as well as their global rivals IBM and Accenture are increasingly focusing on deals in India on rising investments.

Source:http://economictimes.indiatimes.com/infotech/software/India-IT-spend-to-rise-14-pc-in-2010-Gartner/articleshow/5867849.cms