These new rules will create a favourable environment for employees to work from home and work from anywhere.
When the coronavirus pandemic started to trouble India, the government in March imposed a complete lockdown due to which, many companies allowed their employees to work from home. However, now that the economy is being opened gradually with less COVID-19 restrictions in place, the government on Thursday made it easier for some industries to allow employees to work permanently from home.
The Centre has announced simplification of guidelines for companies offering business process outsourcing (BPO) and IT-based services (ITeS).
These new rules will create a favourable environment for employees to work from home and work from anywhere. Periodic reporting and other commitments for companies have been eliminated. As per an official release, the objective of this step is to strengthen the industry.
"Committed to furthering ‘Ease of Doing Business’ and making India a tech hub! GoI has significantly simplified Other Service Provider (OSP) guidelines of the Telecom Department. Compliance burdens of BPO industry will be greatly reduced due to this." Prime Minister Narendra Modi tweeted.
"Registration requirement for OSPs has been done away with altogether. The BPO industry engaged in data related work is out of the ambit of OSP regulations. Many other requirements have been done away with. These steps will further flexibility and productivity," another tweet by the PM read.
"India’s IT sector is our pride. The prowess of this sector is recognised globally. We are committed to doing everything possible to ensure a conducive environment for growth and innovation in India. Today’s decisions will especially encourage young talent in the sector!" he wrote in another tweet.
What are OSPs?
OSPs are companies that use telecommunications resources to provide application services, IT-related services or outsourcing services of any kind. In this way companies are called BPO, Knowledge Process Outsourcing (KPO), ITES and Call Center.
Union Minister for Communications, Electronics and Information Technology Ravi Shankar Prasad also tweeted and said that the government has taken a major reform initiative to liberalize the regulatory regime for OSPs.
"Today Narendra Modi Govt has taken a major reform initiative to liberalize the regulatory regime for “Other Service Provider”. This will boost the IT/ ITeS/ BPO industry and create a friendly regime for Work from Home in India," he tweeted.
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