With a view to enabling business process outsourcing (BPO) and other IT enabled services to handle work from the US and EU with competitive advantage, the Government proposes amendments to a handful of legislations ranging from the Information Technology Act 2000, the Indian Penal Code, the Indian Contracts Act, Consumer Protection Act as well as the Specific Relief Act to incorporate data privacy and security laws. An expert group constituted by the Department of Information Technology is said to be reviewing domestic laws with a view to fine-tuning them.

The attempt will be to bring in data privacy norms without increasing compliance costs for companies while allowing some leeway for contracts to address data security concerns. The existing IT Act has been found to have certain lacunae such as no direct, proactive provisions to protect data. Protection is through implication and therefore damages recoverable can only be through a laborious process of “demonstrating and proving” that there has been a breach. In addition there is no law governing misuse such as deletion, leaking out information as well as threats to put out sensitive information on the internet.

After General Motors (GM) opened its R&D centre early this year, its first outside the US, with an investment of $21mln, Bangalore has witnessed more companies setting up dedicated R&D units Alstom, the French power equipment maker, is setting up a unit to undertake activities linked to IT. Fiorano Software, an infrastructure company, is looking to set up its second R&D facility in India at Bangalore.

Continuous Computing Corporation (CCPU), a provider of network service ready platform solutions for telecom equipment manufacturers, is setting up an R&D centre in Bangalore with an investment of $3mln. Fiorano Software, an infrastructure software company, is planning to set up its second R&D facility in India at Bangalore. The company’s earlier centre was set up in Delhi nine years ago.

In addition to R&D investments, the city also witnessed additional facilities being created by existing companies. iSeva, an Indian BPO firm, having e4e group as its majority stake holder, is planning its third facility in Bangalore. Network equipment maker Juniper Networks plans to consolidate its software development facilities in Bangalore. Apart from integrating its dispersed centres, Juniper is also looking at doubling its headcount in India in the next six months.

Key leasing transactions witnessed in Bangalore included JP Morgan picking up 150,000 sq feet of built-to-suit office space at Prestige Tech Park, outer ring road. Valdel has leased 60,000 sq feet of office space in Divyasree Techno Park, Whitefield. Zap App has leased about 33,000 sq feet of office space at Inventor Block ITPL, Whitefield and Digitran took 9,000 sq feet of office space at The Estate, Dickenson Road.