Nasscom (National Association of Software and Services Companies), the body representing the country’s information technology-business process outsourcing (IT-BPO) industry, is in talks with six states to give essential services status to the IT-BPO companies so that they are protected from the backlash of violent attacks, curfews, bandhs, among other incidents that stall work.
While Nasscom is in talks with Tamil Nadu, Karnataka, Maharashtra, Uttar Pradesh, Haryana and West Bengal, Andhra Pradesh notified the rule two months back. These states employ almost two million people in the IT-BPO companies and 93 per cent of work happens from centres located in these states.
“After the Telangana issue, we approached the AP government and they obliged. In fact, they have also offered us special protection in tough times. Most other states are also receptive but these things take some time. This status in important for us as we are dealing with international clients and local issues should not hinder business,” said Som Mittal, president of Nasscom.
With the essential services status, the IT-BPO companies in these states will get special provisions like hospitals, hotels, railways and airlines so that it is business as usual and work doesn’t suffer. Employees can get curfew passes in case of curfews and protection in such times.
Such protection will make sure that employees safely reach their offices and there is minimal impact on work. For instance, the IT-BPO industry in Kolkata witnessed 80 per cent attendance, while that of Mumbai saw 85 per cent presence during yesterday’s countrywide daylong strike.
According to Sangeeta Gupta, vice-president of Nasscom, with such incidents, the brand image of India takes a beating as business sentiment gets hit.
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“For the BPOs, the impact was less and the holiday in the US (because of the US’ Independence Day celebrations) came as a blessing in disguise, but for the IT companies, this lead to destructive business as the business sentiment got hit. Though there has not been any loss to business as such, but now some companies will have to work on Saturday. Moreover, from an overall brand perspective, working in India is impacted,” she said referring to the bandh.
Gupta explained though there had not been any quantifiable loss to business, bandhs and closures could be a threat to the Indian IT industry.