Stage set for India's IT sector refresh

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Stage set for India's IT sector refresh

Read more on - Polity | Economy | Schemes | S&T | Environment


  • Lessons from the pandemic: Ever since April 2020, most of the Indian IT-BPM workforce (~ 45 lakh) has been working from home (WFH). IT sector that always focused on world-class offices has now realised that they may not be needed at all! Employees can now work from small towns as well.
  • The plus point: Women and the disabled are now able to participate even more. Strong virtual communities have been formed. And employees' access to top management is dramatically up. A downside was the encroachment in private spaces of employees.
  • 'Future of Work' taskforce: The NASSCOM set up this taskforce to see how the best of physical and virtual world can be brought together. Everyone agrees that remote working is here to stay, and a hybrid work model is now needed. It's all about finding the right balance between the two.
  • The right balance: Companies that get the balance right, will win by being able to attract better talent, raise productivity and earn more customer trust. But the persistent problem industry faced was OSP - Other Service Providers regime.
  • OSP: It was tough to implement remote working under the OSP regime, and the govt. gave a temporary relaxation for 2020. Industry demanded a long-term solution. 
  • The PM himself: The Prime Minister announced liberalisation in the OSP terms, and the industry rejoiced. Key points are
    1. Ease of doing business: The reforms have removed many tough conditions. Non-voice processes are outside the purview of OSP definition. For voice-based OSPs, no registration or reporting is now needed. EPABX can now be cloud-based. Major rules like static IPs, bank guarantees are all gone.
    2. Reinventing: The existing IT-BPM landscape will undergo a change now, with the work from home element coming in. New business models will emerge.
    3. Talent disruption: Since talent needed to be on campus so far, the reach of firms was limited. Now, everyone is welcome to join in. 
    4. Diversity and equal opportunity: The IT sector was always pro-diversity, and the new norms will give a boost to that trend.
    5. Investment push: Many firms wanted to come to India as part of their China-plus strategy, but were unsure about remote working. The reforms ends it.
  • Problems persisting: The SEZ rules and new labour codes do not recognised long term remote work for Indian industry. That reform is awaited. 
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                                                                                                                                                                                                                                                                  PT's IAS Academy: Stage set for India's IT sector refresh
                                                                                                                                                                                                                                                                  Stage set for India's IT sector refresh
                                                                                                                                                                                                                                                                  Excellent study material for all civil services aspirants - begin learning - Kar ke dikhayenge!
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