New data privacy law to boost IT-BPO industry

New data privacy law to boost IT-BPO industry
PHL BPO sector hails passing of Data Privacy Act

MANILA, Philippines - The new Data Privacy law is expected to strengthen the country's booming Information Technology-Business Process Outsourcing (IT-BPO) industry, as it makes Philippine legislation in line with international data privacy standards.

Louis Casambre, executive director of the Information and Communications Technology Office of the Department of Science and Technology, said the measure will allow the industry to expand in other segments such as healthcare and HR outsourcing.

"We see this Act as keystone legislation that will strengthen our country’s position as a leader in IT-BPO," he said.

Republic Act 10173 or the Data Privacy Act of 2012 was signed by President Aquino on August 15. It puts in place measures to protect and preserve the integrity, security and confidentiality of personal data collected by government and private entities in their operations.

Alejandro Melchor III, deputy executive director for ICT industry development, said the new law will help the Philippines become a global leader for shared services, one of the fastest growing segments of the IT-BPO industry.

Benedict Hernandez, Business Processing Association of the Philippines president and CEO, said RA 10173 "brings the Philippines to international standards of privacy protection"

The act is based on standards set by the European Parliament and is aligned with the Asia Pacific Economic Cooperation (APEC) Information Privacy Framework.

RA 10173 also creates the National Privacy Commission under the Office of the President that will enforce the law, receive complaints, set investigations and impose requisite sanctions. ABS-CBN

****

President Benigno Aquino III's signing of Republic Act 10173, the Data Privacy Act, will boost the confidence of international investors in the information technology and business process outsourcing sectors.

This was the stand of the Business Processing Association of the Philippines (BPAP), which said the new measure will augur well for the IT-BPO industry.

“(RA 10173) brings the Philippines to international standards of privacy protection,” said BPAP president and CEO Benedict Hernandez.

“Because the IT-BPO industry and best practice is evolving rapidly, enhancements to existing legislation will ensure that the Philippines remains competitive and in fact leads breakthrough initiatives in best practices for the industry,” he added.

The BPAP noted the IT-BPO industry generated $11 billion in revenues in 2011, and employed approximately 640,000 direct employees.

Hernandez also said the administration has been supportive of the industry, and recognizes its role as an important generator of well-paying direct and indirect jobs for Filipinos.

"Everything we do as a nation to strengthen the industry contributes to increased investment, accelerated job generation, and continued development into an industry characterized by the high-value, high-quality services we deliver to the world,” he said.

Signed into law by President Benigno Aquino III last Aug. 15, the new law requires the protection and preservation of personal data collected by public agencies and private organizations.

The act conforms to standards set by the European Parliament and is aligned with the Asia Pacific Economic Cooperation (APEC) Information Privacy Framework.

Hernandez cited Sen. Edgardo Angara's statement last week that the new law is "an important first step to ensuring competitiveness of the IT-BPO industry.”

Angara and House ICT Committee chairman Rep. Sigfrido Tiñga, who co-chair the Congressional Commission on Science and Technology and Engineering, were the primary proponents of the Data Privacy Act in Congress.

Earlier, Angara said legislation supporting the IT-BPO industry will continue to develop with the industry, citing as an example the importance of balancing the free flow of information with privacy rights.

He also said the Cybercrime Prevention Act should be enacted to provide “a legal framework for the detection, apprehension, and prosecution of such Internet-related crimes as hacking, identity theft, phishing, spamming,” and other crimes.

The Data Privacy Act calls for the creation of a National Privacy Commission under the Department of Transportation and Communications.

But Angara noted the implementation of the law requires training of experts and development of implementing rules and regulations.

“The greater challenge lies in its implementation and enforcement,” Angara had said of the act and its intended impact on the IT-BPO industry and other sectors. — TJD, GMA News