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Tech security in India worries US firms

29 November 2004

New Delhi, November 29: With IT outsourcing going up, security is emerging as a major threat to businesses. According to a recent survey conducted by the National Association of Software and Service Companies (Nasscom) and Information Technology Association of America (ITAA) across 115 IT companies in India and the US, 82% of the companies in the US were concerned about information security practices in India.

The debate has gathered momentum after the recent hearing of a case involving the theft of source code for a three-dimensional (3D) computer-aided design product of US-based Solid Works from Geometric Software Solutions Ltd (GSSL), Mumbai. Scheduled to come up in the court of metropolitan magistrate of New Delhi, VK Khanna, the case is yet to go on trial after two years of filing. It has been quoted as a reference case by anti-outsourcing elements in the US.

Here’s an account of the case. Solid Works had given a contract to GSSL to debug the source code of their software package Solid Works 2001 Plus. The accused was one of the employees of GSSL, working on this debugging project. Later, he resigned from the company but took the source code of the software along with him. In July, 2002, he contacted various US companies through e-mail, stating that he was in possession of the source code and was willing to sell it. Another US company, Solid Concepts, responded in solicitation. They also informed Solid Works and the Federal Bureau of Investigation (FBI).

After many e-mail communications, the accused agreed to provide the source code for $200,000. A meeting between the representative of the US company and the accused was fixed in August 2002 in one of the five star hotels in New Delhi. Acting on prior information, a CBI team audio/video recorded the meeting and subsequently, the accused was arrested and produced in the court. After a criminal charge of breach of trust with his Indian employer was filed, he was released on bail.

Source: Indian Express


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