Because of the way outsourcing deals are structured, John Bligh, director of outsourcing for Accenture, said it is near-impossible for overseas workers to get hold of personal information to sell "down the street".
"Our employees in India are employees of Accenture and they go through strict confidentiality training and all applications have security embedded into them so we can do reports at any time on who has accessed data and know who has accessed files, but not what was in the file," Bligh said.
"A lot of the time offshore workers don't get access to client data and when it does [happen], more often than not in a call centre, the customer information never leaves the country as the person working offshore signs in through a secured application.
"Our advice to clients is if there is sensitive information then use technology to disguise the information."
However, despite all the assurances Australian IT managers said even with strict procedures in place, data still appears to go missing.
Nintendo Australia IT manager Peter Stroud said despite the use of standards and governance controls, it is still a concern that breaches exist.
"I'd imagine from a compliance point of view that attempting data security breaches would be very hard if the business was subject to legislation similar to Sarbanes-Oxley," Stroud said.
"It's not worth alienating your customers, because the savings you would accrue from this kind of outsourcing may be worth the risk in the short term; but in the long term, savings must be compared to risks and wages in India are increasing which reduces the profitability anyway."
Mazda Australia IT manager Tim Ballingall said the most important part of these contracts is the service level agreements (SLAs).
"Business must go into these deals with eyes wide open, because in the long run breaches will cost a lot more and there is almost nothing anyone can do to restore a ruined company image," Ballingall said.
"I'd like to think that business would not compromise data security for cost cutting, so I'd expect the contract would need to include strict SLAs when using these providers."
Other offshore providers, Tata, Wipro, IBM and Infosys did not comment on the documentary.
But despite the data theft controversy, Australian banks are moving ahead with their offshoring plans.
The National Australia Bank (NAB) currently has 20 people based in India and is looking to increase that figure to around 80.
Westpac is currently deciding whether it will move 300 positions from its personal loans division to India.
According to Westpac spokesperson David Lording, the organization is still reviewing a number of issues.
ANZ currently has 1400 data processors employed in Bangalore.
One bank that has resisted offshoring is the Commonwealth Bank. Earlier this month the bank issued a statement claiming that research indicates "there may be a labour shortage looming in Australia in the next five to 10 years and the bank will continue to prepare for this by keeping all opportunities under review, including developing people policies to ensure it is able to attract and retain staff in Australia".