Easier OSP rules, WFH norms to create more job prospects in small towns

Experts say the move will also encourage companies to focus on innovative products and solutions and improve BPM delivery efficiencies

With the government announcing simplified guidelines for Business Process Outsourcing (BPO) and IT Enabled Services (ITeS) players to reduce the compliance burden for the industry and facilitate 'Work from Home' (WFH) and 'Work from Anywhere', industry players and experts say the move will be a game changer for the sector. They assert that the move will open up job opportunities in tier-II and tier-III towns and encourage companies to focus on innovative products and solutions and improve BPM delivery efficiencies.

Unlike the IT services industries, the transition to WFH was not smooth for the ITeS sector. One of the major measures that the sector had been demanding is the relaxation of the other service providers (OSP) guidelines issued by the Department of Telecom. 

According to K S Viswanathan, Vice President (Industry Initiatives) at industry body Nasscom, the relaxation opens a channel for firms to access talent available at multiple locations as people needn't come down to cities to work.

“The new regulations are aimed at providing flexibility to adopt a ‘Work From Anywhere’ model for the BPM sector,” said Rajiv Ahuja, President at Startek, which is a global BPM firm. “This will enhance our ability to provide business continuity especially during these uncertain times, and also make the industry more competitive in the global markets. The new relaxation of rules for WFH will help us take jobs to the tier 2 and 3 towns, provide impetus to focus on innovative products and solutions and improve BPM delivery efficiencies,” he added.

 

During the last few months, the US-headquartered company which employs around 15,000 employees in India serving various local as well as global clients has hired over 2,000 people in smaller towns like Chindhwada (MP), Bhopal, Lucknow and Vijaywada.

Apart from spreading wings to smaller cities and getting access to a huge talent base, the new initiatives are also expected to give a major boost to India as an offshore destination for BPM companies. People in the know say that while companies had already started shifting to India from other offshore destinations like Philippines during the pandemic, now service providers from nearshore locations may also begin getting work back to India given the challenges of WFH easing.
 

“From a point of view of global competitiveness, it makes India a very attractive destination. In the Covid situation, there is realignment of global supply chains, if companies are looking to optimise their resources India becomes much more attractive as it also has talent,” said Ashish Aggarwal, Head, Public Policy, Nasscom.

The new rules do away with registration requirements for Other Service Providers (OSPs), while the BPO industry engaged in data related work has been taken out of the ambit of the said regulations. OSPs are entities which provide applications services, IT enabled services or any kind of outsourcing services using telecom resources. The term refers to BPOs, KPOs (Knowledge Process Outsourcing), ITeS, call centres, amongst others. 

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 thus making adoption of work from home easier.

 

The move has also been welcomed by leading IT services companies who also play a role in ITeS space. Wipro chairman Rishad Premji called it a forward thinking and progressive step by the government which will make the technology industry much more competitive. Echoing similar views, Infosys Chairman Nandan Nilekani called it a case of dramatic Ease of Business in the digital world. 

“It helps the tech sector immensely, while enhancing sustainability, reducing carbon footprint and paving the way for a more inclusive workforce. This policy will also spur more innovation in our industry, that is in the forefront of digital transformation of the global enterprises,” said C Vijayakumar, President & CEO, HCL Technologies.

What the industry leadership is saying

*Rishad Premji, Chairman Wipro Ltd

This is truly long term, progressive thinking by the Government which will make our technology industry that much more competitive. Working from anywhere has become the new reality and thank you for seeing this.

*Nandan Nilekani, Chairman, Infosys

The reforms of Other Service Provider regulations for BPO/BPM industry is breath-taking in its simplicity. Truly a case of dramatic Ease of Business in the digital world. 

*Amit Agarwal, COuntry head, Amazon India

The liberalised regime for ITeS/BPO sector is a welcome move. Looking forward to continued reforms that ease compliance, allow companies to focus on innovation, job creation & being globally competitive to realise the vision of an Atmanirbhar Bharat.