Monthly Archives: October 2014

Volkswagen Group Plans To Build Inhouse IT Skills And Capabilities In India To Meet Contemporary Techno Legal Requirements

Volkswagen Group Plans To Built Inhouse IT Skills And Capabilities In India To Meet Contemporary Techno Legal RequirementsOutsourcing of a company’s work to a service provider may be cost effective but is not free from risks. For instance, sensitive information and business secrets may leak out due to such outsourcing activities. India has created an anti outsourcing environment for herself be neglecting to enact dedicated privacy laws in India and data protection laws in India (PDF).

Even the LPO and KPO in India have not kept the pace with the contemporary requirements of business organisations. As a result many business organisations have started developing their own inhouse teams to deal with company’s critical and sensitive works instead of outsourcing the same to external entities. The only exception seems to be high end and highly specialised techno legal issues that are still managed by external experts.

We at Perry4Law have been managing many such high end and highly specilaised techno legal issues for both national and international clients. We provide a very conducive and comfortable environment for our clients by acting as an “extended wing” of the concerned organisation thereby giving them full autonomy and flexibility to manage their own works at their respective levels. Wherever required, we can also extend our techno legal skills development trainings and courses through both online and offline methods. While performing all these functions, we keep in mind the cyber security legal obligations as applicable to law firms in India and world wide.

In a latest move reflecting the trend of developing inhouse capabilities, the Volkswagen Group has decided to open an IT development centre in Pune next month as it takes steps to secure critical technical knowledge, quicken inhouse processes and cut down dependence on outsourcing. Earlier, Volkswagen India had launched a new mobile service application for its customers, which will provide direct access to information on its sales and service networks as well as the latest sales and after-sales offers.

Volkswagen is well aware of the potential of e-commerce in India on the one hand and is cautious of the growing theft of trade secrets through cyber crimes on the other hand. Brand protection and management in India is a tedious task and it is a good strategy to protect it in the best possible techno legal manner. Some individuals have been indulging into illegal activities to protect the brands of their clients in India that is counterproductive for their clients in the long run. Corporate espionage and intellectual property theft cases have been reported by Japanese company Kawasaki Heavy Industries (KHI), Mozilla, Toshiba, etc in the past. SanDisk and Toshiba have even sued Hynix over suspected flash memory technology leak. Similarly, anti piracy and copyright infringement protection to entertainment industry of India from online mediums and websites has become a big challenge. Overall tackling intellectual property violations and cyber crimes and cyber attacks has become a priority for companies around the world and Volkswagen may also follow the pursuit.

According to ET the regional competency centre of Volkswagen in India is expected to house over 1,000 engineers over the next three to four years. Milan Kumar will head the centre in India, which will provide IT support to all its companies across the world by leveraging the talent available in the country. Global companies such as General Motors, Fiat, and Hyundai Motor Company are increasingly investing on IT and R&D resources in India. German auto component major Bosch has a 4,000-strong IT workforce in Bangalore, which apart from working on systems and processes, handles critical development work for the group globally. Volkswagen’s Pune centre will start with the IT function and may eventually expand into a bigger development role.

With the growing IT needs of the Volkswagen Group, the focus will be on building highly competent IT Teams and developing inhouse knowledge as a foundation for continued innovation. The problem that Volkswagen Group is facing is that a lot of knowledge has gone out to vendors and sometimes it was becoming hard for it to understand its own systems. Now, the Group wants the knowledge of critical applications to be managed inhouse. And security is a key focus for the Group as it does not want data about key Volkswagen processes to be with a vendor.

The Companies Act, 2013 of India has also introduced cyber law, cyber security and other techno legal liability and obligations on the part of directors of Indian companies. Both the Indian companies and their directors are now required to comply with techno legal requirements of various Indian laws. There would be additional techno legal obligations that Volkswagen Group in general and Volkswagen India in particular would be required to comply with. We hope and wish that Volkswagen Group and Volkswagen India would meet these techno legal requirements in India in true letter and spirit.