Tuesday, December 13, 2011

Midsized service firms face business continuity issues if senior executives leave with operational data

Three senior executives of a midsized private firm, where arrested under the Indian IT Act on charges of stealing data and software. The executives started their own company and took several employees from their previous firms with them. This incident highlights the need for effective data protection for mid sized firms in the service industry which stand the risk of their business models being replicated if the senior team moves out along with the data and other key employees. Beside loss of data there is a possibility of business interruption or business continuity as key client relationship and operations are hampered.
While, this may not apply in this case, I have heard of certain companies filing cases for data theft under the IT Act to harass key employees who have left the company with the intent of working with competitors or setting up their own firms.


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  2. I have a doubt, why this don't apply to Big org, it may impact to this big houses as well and can't say a big loss but I believe a loss will always be there direct or indirect.

  3. This is a good common sense topic and i agree with rupaheli..