DPDP Act: IT services firms likely to have a short learning curve

Indian information technology (IT) service providers will have a short learning curve to adapt to India's digital landscape after the Digital Personal Data Protection (DPDP) Act was notified last week as they have already been following such regulations in other parts of the world, especially Europe, for the last few years, according to experts.

- AVIK DAS

While compliance costs will surely go up, some estimate it to be in double digits, that is not expected to materially impact operations or dent margins because Indian companies have been gearing up for this for the last two years since the Act came into existence. All firms have had enough time to beef up their systems and house cybersecurity professionals to ensure minimal breach.

The impact will be minimal because most of the companies, barring TCS, Infosys, Wipro, and Tech Mahindra, have minimum India-facing businesses and clients in the BFSI, telecom, healthcare, government, or business process outsourcing and customer relationship management (CRM) space.