Outsourcing?

Now that the Indian government has worked out an arrangement with Research in Motion for Blackberry servers they are setting their sights a bit higher and are demanding access to all telecommunications within the country.  One of the big problems will be access to corporate VPN's that run through the country to support call centers and other outsourcing services.  American companies that rely heavily on outsourcing will then have no secrets with the Indian government for any data that travels into the country. 

This also raises huge privacy issues for American consumers that are often forced to deal with overseas calls centers and provide personal and financial information.  The questions of how this access is managed and what abuse of private information would be possible still do not have answers.  With the negative public perception of outsourcing, privacy issues and now security issues is outsourcing really still a cost savings to the enterprise?