WFH boost: Govt eases BPO, ITeS rules, scraps registration requirement for OSPs

PM Narendra Modi with FM Nirmala Sitharaman (Image: PTI)

Aiming to encourage the work-from-home trend in India and provide relief to the IT sector, ITeS and BPO industry, the Department of Telecom on November 5 initiated major reforms and done away with the registration requirements for Other Service Providers (OSPs) altogether.

The central government also removed the requirement of bank guarantee and static IPs. Under the new norms, the requirements for frequent reporting obligations, the publication of diagram and penal provisions have also been removed.

The move is seen as the Union government's attempt to boost 'ease of doing business in India' and make India a tech hub.

"Committed to furthering ‘Ease of Doing Business’ and making India a tech hub!" PM Narendra Modi said about the government's latest move.

"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," the prime minister tweeted.

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. https://t.co/Wi0h3Bl2OC — Narendra Modi (@narendramodi) November 5, 2020

The new framework is expected to provide a strong impetus to India’s industry and will make India one of the most competitive IT jurisdictions in the world.

"The new guidelines are inspired by Prime Minister Modi’s strong emphasis on Minimum Government, Maximum Governance. India’s IT industry is a source of pride for the country and the new guidelines are aimed at removing unnecessary bureaucratic restrictions to allow the industry to focus on innovative new products and solutions," the ministry of communications said in a statement.