European Union’s General Data Protection Regulation (GDPR) has shaken the global business world, especially startups. Kicked in on May 25 this year, GDPR enforces stricter rules for handling and sharing private data of European citizens. India, which a fastest emerging startup hubs for European clients, needs to speed up the GDPR-compliance process even more.
Indian startups, especially tech firms, are high in demand in Europe. The possible EU-India Free Trade Agreement has also strengthened trade relationships between India and EU. Moreover, programs like startup visas and e-residency are attracting young Indian startups to exist in Europe.
The only condition to leverage these opportunities is – stay compliant with GDPR.
Undoubtedly, GDPR compliance comes with a price tag, and this is what makes many startups procrastinate the compliance process. But, experts recommend startups should begin with the compliance process as soon as possible to avoid penalty. GDPR-compliant firms are considered to be credible and transparent in their services. And, this is what startups need the most to grow.
Indian startups, whether they’re operating in the EU or from any other location in the world, should comply with these new rules when dealing with European citizens.
Noncompliance will cost 4% of a company’s global annual turnover, or a hefty fine of $20 billion.
Thus, incurring GDPR compliance and related infrastructure costs is a necessary step ahead, both financially and morally.
What Can Indian Startups Do To Become GDPR-Compliant?
GDPR has put the Indian Startup ecosystem in a state of fear. The reason is Indian startups are under-informed. So, the first thing companies have to do is indulge their heads and resources in understanding the norms and provisions of GDPR. Also, they need to keep a tab on all GDPR latest updates to avoid penalty.
GDPR compliance is easier and cost-effective for smaller and mid-size startups than for large firms that deal with an enormous consumer base.
Understand what and how much data your company holds of European clients, consumers, and suppliers. You should also consider your infrastructure and capacity to detect, report and handle data breaches if any and avoid data leakage.
Educate Your Personnel
Educate your workforce about the provision, norms, and work according to this new rule. As rules for data protection are getting tougher, everyone should be aware of GDPR latest updates to adhere to these rules.
Hire a Data Protection Officer
As per GDPR norms, large companies, handling massive data, should acquire the services of a Data Protection Officer (DPO). The role of DPO, according to GDPR, is to implement and oversee data protection strategies within an organization to ensure the company’s compliance with GDPR norms.
However, companies have the freedom to decide how to move forward to ensure they comply with GDPR.
The Indian business ecosystem has avoided data protection largely for a long time. But now all companies, small or large, startup or established, have to adapt their business model in sync with the GDPR regulations.
Do it voluntarily or undress duress! In every case, data protection is the winner. The best choice is, adopt the regulation rather than inviting evitable hefty fine and bad reputation.