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US – India ICT Working group IT discussion paper 04 November 2009 INDIA PROVIDING GROWTH FOR US COMPANIES Earnings Break up, top 10 companies of S&P500 index Markets such as India fueling growth for US Tech cos** India has opened up its markets in the Technology sector

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US – India ICT Working group

IT discussion paper

04 November 2009


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INDIA PROVIDING GROWTH FOR US COMPANIES

Earnings Break up, top 10 companies of S&P500 index

Markets such as India fueling growth for US Tech cos**

  • India has opened up its markets in the Technology sector

  • US Companies have been generating high growth in both hardware and services, winning large deals

  • 7 of the top 20 tech companies in India are US origin

Source: Annual reports of companies, *USTPO, **Dataquest

2


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IN THIS LIGHT, BILLS THAT RESTRICT BUSINESS ARE COUNTER PRODUCTIVE

Salient points of the bill introduced by Senators Durbin and Grassley

  • IMPACT ON INDUSTRY:

    • No new visas

    • Business model change

    • Higher costs

    • Increased documentation and bureaucracy

3


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Protectionist measures globally, cause concerns in the Indian IT Industry

Concerns

Examples


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What does the Industry seek? Indian IT Industry


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CONTRARY TO POPULAR PERCEPTION, INDIAN IT COMPANIES DO NOT HOARD H-1 B VISAS

Break up of visas issued to Indian companies

(Total visas – 107K)

H-1B visas issued to top 30 Indian IT companies

Source: DOL report FY’08; NFAP (share changes to 15.1% out of 85K)


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Indo-US Totalisation agreement – lack of progress HOARD H-1 B VISAS

  • US has signed more than 20 Totalisation agreements all with developed nations

  • Systems in the developing world with very large population have to address needs of various strata's of society, hence - multiple layers / frameworks

  • Mismatch between US visa regime and US social security

  • Lack of progress on this a concern for the Indian Industry

  • Estimates suggest Indian workers contribute more than $1B each year without receiving any benefits

  • Unfair treatment handed to some of the best minds who are contribute towards US companies and economies

  • Instead of looking at coverage of total population of India, US system should look at workers in the organized sector who are covered under mandatory framework similar to US system

India proposes:

Till the time US system can accommodate country such as India for a comprehensive treaty. A short term arrangement between India and US Government that allows either exemption or refund of the contribution made by workers in their respective countries on reciprocity basis between both countries


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Indian population and Social security coverage HOARD H-1 B VISAS

Composition of workforce

Coverage of the organized workforce

Differences between Indian and US system

Similarities

  • Agricultural workers and domestic employees excluded under both systems

  • Government employees covered under special programs under both systems

  • Both systems are managed or regulated by the State

  • Both systems are mandatory

Differences

  • Self-employed excluded under Indian system

  • Differences are in

    • Nature of labour force

    • Stage of development

    • Historical backgrounds

  • Indian system not homogenous like US system but is multi-layered


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IT (Amendment) Act 2008: Encryption Policy HOARD H-1 B VISAS

IT (Amendment) Act 2008

Section 84 A

Strong Encryption

Law Enforcement Reqd

Security interest of country

Growth of e-governance

Govt. to prescribe the modes and methods for encryption

Impetus to e-commerce

Access to plain text

Trust in Transborder data flow

Cooperation from industry

84 A-Encryption Scenarios

Data-at-Rest, Data-in-Transit, Messaging services

Industry Recommendations: NASSCOM- DSCI

Encryption Ecosystem

  • Cooperation with LEA, without resorting to key recovery

  • Disclosure of plain text- bit length of algorithm is irrelevant, as is the registration of products

  • Implementation difficulties in Transborder relations

  • Symmetric encryption for session security: e-commerce/ e-governance

  • Message encryption

  • Securing Data-at-Rest

  • By outsourcing industry for securing client data

  • Propriety encryption tools

  • Encryption up to & including 256 bits AES or equivalent

  • Plain text of encrypted communication, within reasonable time frame (3 days)

  • Due process- transparent and subject to oversight

  • Accountability of LEA agency

  • ISP, mere conduit, is not responsible to help LEA

  • Various tools used by individual


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NASSCOM Approach: DSCI as a Self Regulatory Organization HOARD H-1 B VISAS

…Best Practices approach to Data Protection

Security Market Research

Legal Forums

Academic Collaborations

Data Protection Authorities

Privacy Regulations

Knowledge Collaboration

Security Technology Trends

EU Privacy Directives

  • DSCI- A Self Regulatory Org.

  • Data Protection

  • Best Practices

  • Capacity building

  • Independent oversight

  • Enforcement

  • Dispute Resolution

  • Cyber Crime Speedier trial

Technology Forums

UK- Data Protection Act 1998

Architecture Principles

US- FTC directives, Patriot Act

Solution Categories

Canada- PIPEDA

Legal & Regulatory Requirements

Technology and Vendor interactions

Product, solution trends

Aus- Privacy Act 1988

Technology advancement

JAPAN- JPIPA

Compliance Regulations

Security Vendor Collaboration

GLBA

Vendor forums, interactions

HIPAA

Industry best practices

PCI-DSS

Security Management

ISO 27001

Risk Management

OCTAVE | COSO | FMEA

IT Governance

CoBIT

Security Standards

ITU-T X.1051

Security Practices

NIST SP 800

Infrastructure Mgmt

ITIL | ISO 20000


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