Security has always been a sore point in outsourcing and I prefer to call it as outsourcing's Achilles heel. In India, this is considered as one of the weak points in their outsourcing industry.

Outsourcing means a lot of communication transactions and a lot of incoming and outgoing data. This kind of operational approach are rather prone to security risks. Not to mention access sensitive financial information which could also be a risk for companies.

Even if there is security risk involved in outsourcing, this does not mean it could be minimized. If this weakness could be fixed, the Indian IT industry is set to grow an estimate of 55 billion dollars by the end of 2008.