Germany paves way for more outsourcing

German chancellor Angela Merkel (pictured) may be in the process of ushering in new outsourcing contracts if a new draft law on confidentiality gets onto the statute books.

As the Out-Law website explains, German law is currently very restrictive on who’s allowed to know what when it comes to confidential information. Doctors, insurers and others are bound by section 203 of the Criminal Code which makes it impossible to give details to people who might otherwise be able to help in outsourcing some of these services.

The proposal now is to relax the law so that third parties will be able to handle the data as well. This would open the door to outsourcers and all the strengths (and some would say weaknesses) that they bring. According to the Out-Law article there is currently a measure of uncertainty around the law as it applies to third parties which makes outsourcing contracts difficult on occasion.

Obviously the new laws would need to be as watertight as the existing measures; it appears part of the issue is a lack of clarity over whether the German legislature can actually apply to third parties, even though it applies to specific employees in the public sector (essentially if you don’t need to know a confidential detail to perform your job, you don’t get to know it).

Intelligent Sourcing will continue to report on any developments.

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