Heeding demands by Indian and foreign customers of Information Technology Enabled Services (ITES), alias Business Process Outsourcing (BPO) to address data security and privacy protection issues, the Federal Cabinet approved amendments to relevant laws. The Information Technology Act, 2000 was created to boost e-commerce and also enable e0Governance through a legal framework that governs transactions using computer systems and the Internet. Recent incidents of data theft and an absence of legal mechanism to prosecute the guilty and protect the customers whose data was stolen have created urgency that the BPO business itself is being threatened.

Besides, the 2000 version did not envisage a rampant increase in computer misuse such as video voyeurism, identity theft, e-commerce frauds, auction site frauds, spamming with offensive emails, and distribution or falsification of multimedia data for maligning individuals. The increase in IT applications and usage and a weak law created ideal conditions for such abuses to thrive.