More than half of the organisations surveyed cited concerns about the potential impact of privacy regulations on its operations and data handling practices.
68% consumers trust in businesses that are transparent about their data privacy frameworks.
New Delhi, 29 October 2023: EY, the leading professional services firm, in its recent survey ‘The India Data Protection Readiness Report’ underlines India Inc.’s preparedness levels to comply with the Digital Personal Data Protection Act 2023 (DPDP) and extent to which how the existing data privacy practices followed by organisations shape the buying behaviour of Indian consumers. The survey shows that 32% of organizations foresee technical implementation challenges while and 50% are yet to acquire relevant skills but are open to outsourcing data privacy tasks.
Commenting on the survey findings, Lalit Kalra, Cybersecurity Consulting Partner, EY India, “The DPDP Act safeguards the privacy of individuals in the evolving era new-age security threats, while placing responsibilities on entities involved in data processing. Compliance with this legislation necessitates the establishment of a robust technological infrastructure to guarantee data security and accountability. Moreover, organizations must cultivate a proficient workforce capable of comprehending the legal and ethical dimensions of data processing and adeptly managing data breaches.”
Survey findings also highlight that only 36% of organisations have Data Protection Officers (DPOs) based in India impacting their ability to manage consent and comply with the provisions of the DPDP Act. Other challenges identified include inadequate awareness of regulatory guidelines; resource constraints in their compliance journey and organizational resistance to change, which may create obstacles in implementing the necessary changes within the organization.
Trust and transparency to drive buying decisions
A key revelation from the survey is the potential impact of organizations’ data privacy policies and transparency on consumers’ buying decisions. A significant majority (76%) of respondents expressed that an organization’s commitment to data privacy and transparency would indeed influence their buying preferences. This indicates an increasing awareness among consumers regarding data privacy matters and a readiness to support companies that make privacy a priority.
Sharing her views, Mini Gupta, Cybersecurity Consulting Partner, EY India, “Today, consumers are progressively entrusting their data to a multitude of online platforms and services, yet they frequently find themselves without the necessary awareness and control over the handling of their data. The establishment of a transparent data protection ecosystem is imperative. It not only fosters trust but also empowers consumers to make informed choices, ensuring the preservation of their privacy and security. Additionally, it serves as a means of holding those who collect and process data responsible for their actions.”
While 61% of those surveyed expressed discomfort with firms utilising their personal information for tailoring ads and promotions, it is worth highlighting that 68% place trust in businesses that openly convey their data protection measures. Thus, it’s imperative for companies to emphasise transparency, privacy, and clear communication as they endeavour to build trust with their customer base.
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