Markey seeks protection for outsourced data.

• Author: Swartz, Nikki
• Position: UP FRONT: News, Trends & Analysis

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According to a report by U.S. Rep. Edward Markey's (D-Mass.) staff, global outsourcing of computer services and data processing is expected to grow 26 percent annually, becoming a $31 billion market by 2008.

"More spending means more international data exchanges, exchanges which are, in many cases, insecure and vulnerable to theft, unauthorized access, and misuses," the report states.

For example, the report notes two instances in India and Pakistan where workers for U.S.-based medical firms or centers threatened to release confidential medical records online unless they received a cash payment from the company. The report says neither country has basic privacy safeguards for personal data.

Because financial services, medical data firms, and even tax preparers often transfer customer data to countries with poor privacy protection laws, Markey recently filed legislation that would give consumers more control over their personal financial and medical information.

"Consumers deserve not only to know where their personal information is going, but also to have confidence that their sensitive information is collected, used, and stored safely, wherever in the world that may be," he said in a statement.

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