Government reduces compliance burden for BPOs, does away with registration requirements for OSPs

In a bid to ensure ease of doing business for the IT industry especially BPO and IT-enabled services, the Department of Telecom has decided to do away with the registration requirements for Other Service Providers (OSPs). The BPO industry’s compliance burden has been reduced, and BPOs that are engaged in data-related work have also been taken out of the ambit of OSP regulations.

The new guidelines are aimed at removing unnecessary bureaucratic restrictions to allow the industry to focus on innovative new products and solutions, an official statement stated on Thursday.

“Requirements such as deposit of bank guarantees, the requirement for static IPs, frequent reporting obligations, publication of network diagram, penal provisions etc. have also been removed. Similarly, several other requirements, which prevented companies from adopting ‘Work from Home’ and ‘Work from Anywhere’ policies, have also been removed. Additional dispensations to enhance flexibility for the industry have been allowed,” it added.

The government believes the new framework will provide a strong impetus to India’s industry and will make India one of the most competitive IT jurisdictions in the world. “With this reform, the Government of India sends out a strong signal of its support to the IT industry with a view to encouraging increased investment in the Sector. The reform will certainly unleash the potential of our talented youth by making India as a preferred destination for the Information and Knowledge Outsourcing Industry. It would further the vision of ‘AtmaNirbhar Bharat’,” the official statement added.

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