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Technology industry executives on Friday welcomed the latest relaxations in compliance and remote working rules for business process outsourcing (BPO) and IT-enabled services (ITeS).

On Thursday, the government scrapped frequent reporting requirements, the mandatory publication of network diagrams and penal provisions, among others, while easing remote working for so-called Other Service Providers (OSPs). The new norms also scrapped registration requirements for OSPs.

“The reforms of Other Service Provider regulations for BPO/BPM industry are breath-taking in its simplicity. Truly a case of dramatic Ease of Business in the digital world," Infosys Ltd’s co-founder and executive vice-chairman Nandan Nilekani tweeted.

The new guidelines will reduce the compliance burden on the BPM industry, industry body Nasscom said, welcoming the scrapping of the registration requirement for OSPs. “There are some security-related obligations for voice-based OSPs which appear to be fine. The BPM industry engaged in data-related work have been completely taken out of the ambit of the definition of an OSP. Access to remote working will give our industry an epic boost and significantly expand access to talent, increase job creation, catapult Indian IT and BPM to the next level of growth and innovation, thereby making India a global tech hub," Nasscom said in a statement.

C. Vijayakumar, president and chief executive of HCL Technologies Ltd, termed it a “progressive policy."

“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, which is at the forefront of the digital transformation of global enterprises," said Vijayakumar.

Other top company executives said easing OSP guidelines would help scale innovation and growth, and make India a global tech hub.

The department of telecom published the relaxations after IT firms asked for permanent relaxation on working location, a pattern that emerged during the lockdown months.

Microsoft India president Anant Maheshwari said, “Great to see the long-term vision of the government to empower the technology industry. This will accelerate tech innovation and make Indian IT services even more competitive globally."

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