Compliance of EU data protection rule, many Indian firms lagging on

"63 per cent of those who are familiar with the requirements and impact of GDPR, continue to lag behind in complying with GDPR," the EY report said.

Many Indian firms, including some of those with Rs 10,000 crore revenue, have been found to be lagging on compliance of European Union data protection rule, according to a survey conducted by advisory firm EY.

"63 percent of those who are familiar with the requirements and impact of GDPR, continue to lag behind in complying with GDPR," the EY report said.

The survey was conducted in the April-June period after European Union's General Data Protection Regulation (GDPR) came in to effect on May 25, 2018.

It covered 80 firms, which included 11 percent companies with revenue of over Rs 10,000 crore, 4 percent with Rs 5,000-10,000 crore, 16 percent with Rs 1,000-5,000 crore range, 22 percent between Rs 500-1,000 crore and 47 percent having less than Rs 500 crore income.

The GDPR has stringent penalty provision of USD 20 million or 4 percent of global turnover of the company, whichever is higher.

"The implementation of EU's GDPR has further propelled an organization's journey towards safeguarding data and building the right security infrastructure for its customers and stakeholders alike. With India having moved a step closer to having its first data privacy law, there is a greater urgency for organizations to strengthen their compliance framework and view privacy as an opportunity to gain competitive advantage," Guru Malladi, advisory markets leader, EY said.

Around 30 percent of the firm surveyed with over Rs 10,000 crore revenue was found to be familiar with the requirements and impact of GDPR but continue to lag behind in complying with GDPR. While the percentage of firms with revenue below Rs 500 crore stood at 41 percent.

"76 percent of the organizations recognize the need to comply with their own information governance policies as the leading factor in their GDPR compliance journey," the survey found.

This included 27 percent of firms with revenue above Rs 10,000 crore, Rs 1,000-5,000 crore and below Rs 500 crore.

"60 percent cited inadequacy of skilled talent as a major obstacle in their GDPR compliance journey," the survey said.

Skilled talent challenge was recorded highest in firms with revenue of less than Rs 500 crore at 46 percent, followed by 19 percent in Rs 500-1,000 crore range, 17 percent in Rs 10,000 crore bracket and 14 percent in Rs 1,000-5,000 crore range.

However, 50 percent of the firms, who neither have customers or suppliers in EU, have plans to increase their privacy spends in the coming year, the report said.

"Law such as EU's GDPR and India's draft Personal Data Protection Bill 2018 are bringing tectonic shifts in the world of privacy. Recent cases of data leakage and hacking have brought the impact on privacy, data protection, consumer rights, trust in digital platforms and cybersecurity to the forefront," Arpinder Singh, Partner and Head for India and Emerging Markets, Forensic and Integrity Services, EY, said.

Misusing user trust by selling their data for profit to third parties without explicit consent will prove to be a challenge for companies, particularly those where harvesting user data is core to business operations. Over the next two years, we will see an increasing number of countries adopting similar data privacy laws to drive increased accountability and safeguard critical information, Singh added.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)