US Federal Reserve has issued additional guidance on outsourcing business functions. These guidelines will affect the banks and financial companies. The norms comprehensively cover vendor risk management.
The new rules govern mortgage processing, valuation services and higher-value outsourcing business. It also places responsibility on directors and senior management of the US financial services firms.
New rules will affect Indian Outsourcing firms. They have to review their Risk Assessment Strategy to include updated Controls for Security. This will result in tougher Contractual and due diligence requirements by the US clients.
For complete news item please refer to http://articles.economictimes.indiatimes.com/2013-12-24/news/45540094_1_tata-consultancy-services-new-guidelines-outsourcing