Hiring manpower from the Indian outsourcing company is permitted under the Contract Labor Act, 1970 (Majmudar & Co n.d., 4). Considering the strategy of Stone Technical Ltd, it can be assumed that the company can be regarded as a principal employer, because its business is not of an intermittent nature in respect of contracts (Majmudar & Co n.d., 4). If the Stone Technical Ltd will hire 20 or more contract workers, it is required to comply with the provisions of the Contract Labor Act (Majmudar & Co n.d., 4). As well it is necessary to take into consideration the fact that Indian law should govern the outsourcing contract; this measure will enable the client to restrain contractor in case of the breaching an outsourcing contract (Majmudar & Co n.d., 4). So as the Indian employee laws are considered to be relatively restrictive, Stone Technical Ltd need to be concerned about the employment rules relating to holidays, flexible working hours, etc. (Mohapatra n.d.).
Privacy and data protection is a matter of concern in India because of the lack of a comprehensive legislation (Chawla 1, 2007). There is neither a specific statute for dealing with this legal issue nor a comprehensive data protection law (Eisenhauer 7, 2005). However, it is possible to derive the protection of privacy and data from different laws concerning the information technology, crimes, intellectual property and contractual relations (Chawla 1, 2007). Even though there is not enough stringent data protection laws in India in order to protect the Indian outsourcing market, there are some provisions in the Act 17 (Sinha 2009). Also the Indian government has enacted a set of electronic commerce regulations, known as the Information Technology Act 2000, which addresses breach of confidentiality provisions, hacking and damage to computer source code (Eisenhauer 7, 2005). For violation of data