The recent release of pandemic-specific work regulations for OSPs (Other Service Providers) by the Department of Telecommunications (DoT) in India is a significant and groundbreaking development.
Introduction
In a thoughtful move, the Telecom Authority of India (TRAI) has introduced positive changes benefiting IT-enabled services, Business Process Outsourcing (BPOs), and Other Service Providers (OSPs), creating a more conducive environment for remote work. Notably, the recent regulations eliminate registration requirements for BPOs exclusively engaged in data-related services, detaching them from the OSP category.
TRAI’s decision comes after more than a year and a half since the suggestion to ease requirements like submitting bank guarantees and registration processes was proposed. The latest directive specifically outlines that data-focused OSPs, unrelated to voice traffic, are no longer obligated to meet registration requirements. However, it is emphasized that OSPs incorporating voice components must still undergo the registration process as mandated by the Telecom Department.
Dot in the Context of A Call Centre—What Is It?
The Department of Telecommunications is a regulatory body that oversees telecommunications and related services in the country.
Everything You Need to Know About OSPs
OSP or Other Service Providers, is an acronym referring to businesses registered in India that provide application services, encompassing IT-enabled services like voice and non-voice BPOs, call centers, telebanking, telemarketing, and telemedicine. Originally, OSPs were mandated to register under government regulations to monitor their resource usage and ensure legitimacy.
Historically, OSPs offered attractive returns with lower initial investments, leading to the emergence of fraudulent entities handling sensitive information without valid licenses. To counter this, registration became essential for OSPs to establish credibility.
Changes to Regulations Surrounding OSPs
The onset of the COVID-19 pandemic in March prompted a nationwide lockdown, affecting BPOs and IT companies providing tertiary services. As businesses faced challenges, OSPs, often vital service providers to banks or hospitals, struggled to adapt.
Initially, the Department of Telecommunications (DoT) required information from employees working from home for business continuity but later relaxed regulations, exempting OSPs from providing government copies of WFH agreements or security deposits.
In a significant development on November 5 in the year 2020, the DoT introduced comprehensive changes, allowing OSP representatives to work from home or any location in India. These representatives are now considered all-encompassing specialists or remote operators of the OSP. Additionally, the new regulations eliminate the need for bank liabilities for interconnection from multiple locations.
Is OSP Enrolment Required?
For service providers in India utilising telecom resources and offering services like telemedicine, Tele-education, telebanking, Tele training, contact centres, e-commerce, and other IT-enabled services, OSP registration is mandatory.
What Are the Osp Rules?
In November 2020, the OSP rules were liberalised to support India’s BPO (Business Process Outsourcing) industry. The new rules have been significantly clarified and made easier to understand from a regulatory and business perspective. For clarifications, you can get in touch with th experts at Vakilsearch right away!
What Are the Advantages of The New Rules?
The recent regulatory changes bring several advantages for both BPOs and IT companies. These changes result in reduced operational costs, including lower expenses for location, space rent, and utilities. With remote agents now recognized as extended employees, compliance requirements no longer mandate companies to provide information about these agents to the Department of Telecommunications (DOT).
This shift towards accepting remote work is expected to become more prevalent.
Moreover,embracing the eased compliance requirements not only creates a new workplace culture but also presents new opportunities and cost savings for businesses. In fact, these regulatory changes are expected to enhance the infrastructure for remote work, encouraging more businesses to establish operations in India.
The ministry has emphasized that these new regulations aim to propel India’s industry forward, positioning the country as one of the most competitive IT jurisdictions globally. By eliminating unnecessary bureaucratic constraints, the rules aim to enable the industry to focus on innovation and the development of cutting-edge goods and services. The government’s strong support for these reforms sends a clear message encouraging further investment in the IT sector.
Conclusion
In conclusion, the government has granted exemptions to the BPO sector engaged in data-related work from OSP regulations, simultaneously eliminating the registration of employees requirement for OSPs. The communications ministry highlighted additional benefits, stating that constraints such as the deposit of bank guarantees, demand for static IPs, frequent reporting obligations, disclosure of network diagrams, and penal provisions have also been abolished.
