The government in compliance with the Other Service Provider (OSP) guidelines of the Department of Telecom (DoT) has eased guidelines for Business Process Outsourcing (BPO) and IT Enabled Services (ITES) companies.  The simplified govt. guidelines aims at reducing the compliance burden for the industry and facilitate ‘Work from Home’ and ‘Work from Anywhere’. The new rules also focus on providing a strong incentive to the industry and to position India amongst one of the most competitive IT jurisdictions in the world.

The new rules for ‘Other Service Providers’ (OSPs) aims at creating a friendly-regime for ‘Work from Home’ and ‘Work from Anywhere’ and also focuses on removing numerous reporting and other obligations for IT and BPO companies.  These new regulations will boost flexibility for these companies to adopt a ‘Work from Home’ culture, a development pivotal at a time when COVID-19 has forced firms to allow employees to work from their homes to ensure everyone’s safety and well-being. The new guidelines also aim removing “unnecessary bureaucratic restrictions” to allow the industry to concentrate on innovative new products and solutions, and also to encourage increased investment in the sector.

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NASSCOM Senior Director and Public Policy Head Ashish Aggarwal called it a bold reform and said, “These will provide several benefits…India is a global outsourcing hub and the new guidelines will promote outsourcing at scale, bringing in more work to India. With the relaxations in WFH regulations, companies will be able to tap into talent from small towns and remote parts of the country.”

New Govt. Guidelines for It and BPO Companies

OSPs refer to entities responsible for providing applications services, IT enabled services or any related outsourcing services using telecom resources. It encompasses BPOs, KPOs, ITES, call centres, and others.  

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An official release said, “Under the revamped guidelines, the requirements such as deposit of bank guarantees, requirement for static IPs, frequent reporting obligations, publication of network diagram, and penal provisions have also been removed.” It also read, “Similarly, several other requirements, which prevented companies from adopting ‘Work from Home’ and ‘Work from Anywhere’ policies have also been removed.”

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