Good News For IT and BPO Companies: Govt Relaxes Work From Home Rules; Industry Calls It 'Game-Changer'

The government announced simplified guidelines for Business Process Outsourcing (BPO) and IT Enabled Services (ITES) companies. These guidelines are to reduce the compliance burden for the industry and facilitate 'Work from Home' and 'Work from Anywhere'.

The new rules would create a friendly-regime for 'Work from Home' and 'Work from Anywhere' while removing several reporting and other obligations for such companies.

Meanwhile, the new rules are also aimed at providing a strong impetus to the industry and positioning India as one of the most competitive IT jurisdictions in the world.

With this major boost to the tech industry, the government has done away with most of the registration and compliance requirements that will facilitate permanent work from home for companies.

As per a press release, the new regulations would boost flexibility for these companies to adopt 'Work from Home' and 'Work from Anywhere' policies, especially at a time when COVID-19 has forced IT and BPO firms to enable employees to work from home.

"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!," Prime Minister Narendra Modi tweeted.

"Similarly, several other requirements, which prevented companies from adopting 'Work from Home' and 'Work from Anywhere' policies have also been removed," the release added. 

However, the additional dispensations to enhance flexibility for the industry have been allowed.

"With an aim to qualitatively improve the Ease of Doing Business of the IT industry particularly Business Process Outsourcing and IT Enabled Services, the government has drastically simplified the Other Service Provider guidelines of the Department of Telecom. The new guidelines tremendously reduce the compliance burden of the BPO industry," the release also pointed.

Union minister for electronics and IT, Ravi Shankar Prasad also tweeted that the Govt has taken a major reform initiative to liberalize the regulatory regime for OSPs. “This will boost the IT/ ITeS/ BPO industry and create a friendly regime for Work from Home in India. #DigitalIndia.”