This is certainly very good news for outsourcing industry of India. Right now, India handles around 8% of US bank transactions and there is a strong possibility that this may increase to 30% by as early as 2010. This will surely create a lot of new jobs. According to an Associated Press report published at MSN Money:
“India's outsourcing industry has the potential to process up to 30 percent of banking transactions in the United States by 2010, but tightening data security is key to realizing that aim, a trade body said Tuesday.
Currently, outsourcing centers in India process about 8 percent of U.S. banking transactions, as financial institutions have increasingly shifted back office work and other software-related jobs to India, where wages are low.”
Security of data is going to be a major issue in this regard. NASSCOM is arguing that security is a world wide issue and India has better record than US and UK about it. There have been several incidents of breach of security in Indian call centers in the last several years. It may be fewer than US and UK but the problem is that whenever something goes wrong in India, the international media gives a lot of coverage about it. When in June of this year, HSBC suffered BPO fraud in India; it was widely publicized by the international media.
I feel that Indian government and NASSCOM should give a lot of emphasis on ensuring data security.
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