India has no data protection law and therefore, there is no law regulating the protection of personal data of staff and employees that are kept in the databases of companies. What India has is the Information Technology 2000 (IT Act 2000) which prohibits the disclosure of data by a person who has secured access to it without the consent of the person whose personal data is being disclosed. The foregoing piece of legislation has therefore, a very narrow application and does not really protect information in company databases from persons who have no secured access to it (Spedding & Rose 307).
In a contract where two parties come from different countries, two sets of law are naturally involved – that of the host country and that of the country of the outsourcing party. In such instances, the parties to the contract must expressly signify in the contract which law must govern the parties’ contractual relationship. Under the Indian judicial system, the choice of law of the parties called “the proper law of the contract” is respected and upheld by the Indian courts. Thus, if StoneTechnical enters into an agreement with an Indian counterpart for the outsourcing venture, the parties must agree by themselves which law should govern their contractual obligations and in case of a dispute under which law should the rights of the parties be determined. In addition, foreign judgments are enforceable in India so long as a reciprocal arrangement exists between India and the country of the outsourcing or FDI country as can be gleaned from the provisions of the Indian Civil Procedure Code. In the absence of such an arrangement, enforcement of such judgment can be had through the filing of an action for its enforcement (Sople 2009 p. 96).
Aside from the foregoing, particular legal issues for outsourcing that are not potentially advantageous to StoneTechnical are the following: absence of at-will employment; statutory protection in employment to a class of