Firms offshoring to India urged to review security

Incident shows a need to review and upgrade protection

UK firms using Indian IT and back-office facilities are being urged to upgrade their security in the wake of a suspected terrorist attack on Bangalore, the country’s technology hub and a popular offshore destination for Western firms.

The raid on the campus of the Indian Institute of Science in December resulted in one death and four injuries. The incident raised fears that terrorists are starting to target India’s technology industry.

Indian IT trade group Nasscom said that while the country’s IT sector has implemented many security measures, the incident shows a need to review and upgrade protection.

UK firms with Indian sites should ensure they have security provisions such as metal detectors, CCTV, security guards and strict access policies, advised Peter Ryan of analyst Datamonitor.

Subramaniam Ramadorai, chief executive of Indian IT services giant TCS, said that firms should also mitigate risk by ensuring they have backup sites at multiple locations.

Even with such precautions there are fears that India’s appeal for offshore development sites could be diminished by the incident. Martyn Hart of the UK’s National Outsourcing Association said further attacks could cause companies to avoid developing their own sites in favour of outsourcing work to Indian service providers with established security procedures. If the dangers grow, firms could even consider alternative offshore locations, he added.

Further attacks could also discourage Western managers from visiting Indian sites to better integrate onshore and offshore work.

But Ryan insisted the attack would not affect UK firms’ willingness to invest in India. “If you look at the quality and cost advantages, India cannot be ignored,” he argued.

Ramadorai agreed that India would not lose out to rival offshore sites as a result of the incident. “Unfortunately, every part of the world faces this threat,” he added.