Indian IT firms asked to upgrade security

The recent attack in Bangalore has raised security concerns among British companies using Indian IT and back-office facilities.

The recent suspect terrorist attack and rape of a call centre worker in Bangalore has raised security concerns among British companies using Indian IT and back-office facilities. They are being urged to upgrade their security amid fears that terrorists are starting to target India's technology industry.

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

Analyst Datamonitor has advised UK firms with Indian sites to ensure they have security provisions such as metal detectors, CCTV, security guards and strict access policies.

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.

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 Peter Ryan of Datamonitor 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.