The Government of India on November 5, 2020 announced new guidelines to facilitate a friendly remote working regime—Other Service Providers (OSPs)—to fast track a permanent ‘work from anywhere’ facility for the Indian IT and ITES industry.
Other Service Providers are bodies that provide services in the telecom industry, using telecom resources. They include Business Process Outsourcing (BPOs) or call centers, Knowledge Process Outsourcing (KPOs), IT Enabled Services (ITES).
The revamped guidelines for Business Process Outsourcing (BPO) and IT Enabled Services (ITES) players seek to reduce the compliance burden for the industry. The new regulations would boost flexibility for OSPs to adopt ‘Work from Home’ and ‘Work from Anywhere’ policies. This would facilitate ‘Work from Home’ and ‘Work from Anywhere’ smoothly amidst the pandemic. The new guidelines have done away with the processes related to registration requirement for OSPs, deposit of bank guarantees, reporting obligations from time to time, unnecessary bureaucratic restrictions, the publication of network diagram, and penal provisions , etc. in order to make the process smooth for the industry.
However, BPO industry engaged in data related work has been taken out of the ambit of the said regulations.
It is expected that these new guidelines would allow the industry to focus on innovative new products and solutions. Through this reform the government has indicated its support to the IT industry with a view to attract investors in this sector. It also shows that government is determined to create more job opportunities in the sector to unleash the potential of youth. With the relaxation in regulations it is expected that companies would be able to tap into talent from small towns and remote parts of the country. This has the potential to make India a preferred destination for Information and Knowledge Outsourcing Industry.