Can an American company legally outsource its data center maintenance, application support to India or any other country? What are the legal issues the Outsourcing provider (who takes work for such companies) will have to face in the US and in India?

Yogesh Malik

Yes, there are many that are doing so.
It depends on various aspects of 1) data security, 2) practices involved in managing private information 2) PII/HIPAA compliance, if required, 3) Federal and State laws
There are many Privacy, Data Protection and Outsourcing laws in US you could go through if you need details

In India, IBM, accenture, HCL, Wipro, HP, NIIT and many other companies take such work.

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