IT Outsourcing in China
China has often been criticized for lax data privacy protection by IT outsourcing companies, but the government's new proposal for data security guidelines may go too far in the opposite direction. The guidelines are intended to better protect the privacy of Chinese citizens and provide guidance for international businesses operating in the country.
They contain a set of broadly applicable rules and principles for storing, handling and transferring personal information. Some business leaders are concerned that the regulations as currently written are stricter then US or European standards, and could cause serious damage to China's growing IT and business process outsourcing industry and its customers. The guidelines require that express consent from an individual must be obtained in connection with the transfer of personal information to any other organization. This could prevent transfers of data to company affiliates, creating a significant impediment to outsourcing.
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