Government eases tech sector guidelines to facilitate work from home
What's the story
The government has simplified guidelines to facilitate permanent Work from Home and Work from Anywhere initiatives for the technology industry. The new rules for Other Service Providers (OSPs), which include BPOs, KPOs, ITES and call centers, would remove frequent reporting and other obligations, thus creating a favorable environment for companies as well as employees. Here are more details on this.
Details
New rules do away with registration requirement for OSPs
The new rules do away with the registration requirement for OSPs. Further, the BPO industry, engaged in data related work, has been exempted from the said regulations. Additionally, other requirements such as deposit of bank guarantees, requirement for static IPs, publication of network diagram, and penal provisions have been removed as well.
Quote
'The reform would further the vision of self-reliant India'
"The reform will certainly unleash the potential of our talented youth by making India as a preferred destination for Information and Knowledge Outsourcing Industry and would further the vision of self-reliant India (sic)," an official press release said.
PM Modi
Committed to making India a tech hub: PM Modi
Following the announcement, Prime Minister Narendra Modi tweeted the government is committed to ensure a conducive environment for growth and innovation in India. "Committed to furthering 'Ease of Doing Business' and making India a tech hub! Government has significantly simplified Other Service Provider (OSP) guidelines of the Telecom Department. Compliance burdens of BPO industry will be greatly reduced due to this," PM Modi tweeted.
Reactions
The move has been lauded by tech giants, associations
The government's move has been lauded by tech giants and trade associations. NASSCOM termed it a bold reform for the BPO players. "With the relaxations in WFH regulations, companies will be able to tap into talent from small towns and remote parts of the country." Meanwhile, Nandan Nilekani, non-executive chairman of Infosys, called it a "case of dramatic Ease of Business in digital world."
Information
In March, employees started working from home due to pandemic
Earlier this year, countless employees packed their desks and began working from home as COVID-19 pandemic started spreading across India and the globe. Keeping the safety of employees in mind, various IT giants allowed their staff members to work remotely. Now, even after months, major companies like TCS, Infosys and Wipro continue to allow Work from Home option for upto 99% of their staff.