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India denied ‘data secure’ status by the EU

NEW DELHI, INDIA, June 21, 2013 / -- A study, commissioned by the EU, has found gaps in India’s data security system which could require changes to laws in India in order for Indian outsourcing organisations to continue their European business.

A source in the Indian Commerce Department told The Hindu on June 15 that changes to laws could be required to meet the data security standards of the EU, which govern where data belonging to organisations within the EU can be hosted.

"The recent communication from the EU Justice Department is worrying for us as it indicates that the EU is not willing to offer us data secure status till we make changes in our systems. This could take a long time as it may also require legislative changes," the Commerce Department official told The Hindu’s Business Line.

The Justice Department of the EU had commissioned a study into the data adequacy of India’s data security system in response to the request from India for recognition as a data secure state.

By not implementing internationally recognised best practices in IT governance and information security, India is set to lose out on business with the EU. With the Data Security Council of India estimating the scale of outsourcing business from the EU to grow from $20 to $50 billion annually, this latest development is an unfortunate development for outsourcing organisations in India.

Organisations looking to adhere to international best practice in information security should seek to implement an Information Security Management System (ISMS) that complies with the ISO 27001 standard.

IT Governance is the leading supplier of information security books & tools relating to cyber security and ISO 27001 in India through With materials designed to help students and practitioners develop their knowledge and to help organisations implement management systems, IT Governance is a one-stop-shop for information security.

Additional information on ISO 27001 is available through an IT Governance ISO 27001 and information security white paper.

Paul Stebbings
IT Governance
+44 (0) 845 070 1750
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