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Quality Process Certification  is an important management strategy  in the software industry to meet the global competition.

One of the key aspects of such quality standards is the Capability of an organization to meet unforeseen legal liabilities arising out of operational negligence.

Such legal liabilities can cripple the Company financially and also take the toll of top management and key staff. It will also dent the image of the company in the market and reduce its competitive edge.

Examples of legal consequences affecting business prospects can be seen in abundance India in the financial services sector. To a certain extent the decline of Radiant Software can be attributed to the legal problems encountered by the Company. Many other software and other companies in India today are potentially at risk of being hauled over coal for various Cyber Law offences.

Prudent managements should therefore start thinking on how to reduce "Legal Risks" of business. A step in this direction has already been initiated through US companies imposing HIPAA compliancy on Indian business partners.

But this is only the beginning and unless concerted action is taken at various levels, no Indian Company will fully be HIPAA compliant.

The passage of ITA-2000 and the proposed Convergence Act will need Cyber Law Compliancy from Indian view point also.

The object of Naavi's Comprehensive Cyber Law Compliancy plan for Indian software companies is to ensure development of an internal process to assess the Cyber Law related risks and take preventive steps to reduce the impact of such risks on business.

The proposed plan is as follows:

1. Sensitizing the Company on Cyber Law related risks

2. Educating top management on key legal provisions

3. Developing a CCL Plan of action and follow up.

 It is necessary for Indian Software industry to recognize that "There Is No Quality Without CCL Compliancy".

The time to act is now because tomorrow may be too late.

Naavi

 May 29, 2002

 

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