In order to encourage our BPO industry, OSP guidelines that were liberalised in November 2020 have been simplified even further: PM Narendra Modi

Ministry of Communications:


In order to encourage our BPO industry, OSP guidelines that were liberalised in November 2020 have been simplified even further, offering greater ease of business and regulatory clarity. This will further reduce compliance burden & help our tech industry.

PM Narendra Modi

Shri Ravi Shankar Prasad, Union Minister for Electronics & Information Technology, Communications and Law & Justice, announced in a press interaction today that Department of Telecommunication has further liberalized the guidelines for Other Service Providers (OSPs). 

These entities are business process outsourcing (BPO) organisations giving Voice based services, in India and abroad. 

The main features of the liberalised guidelines announced today are :-

  1. Distinction between Domestic and International OSPs has been removed. A BPO centre with common Telecom resources will now be able to serve customers located worldwide including in India.
  2. EPABX (Electronic Private Automatic Branch Exchange) of the OSP can be located anywhere in the world. OSPs apart from utilising EPABX services of the Telecom Service Providers can also locate their EPABX at third Party Data Centres in India.
  3. With the removal of the distinction between Domestic and International OSP centres, the interconnectivity between all types of OSP centres is now permitted.
  4. Remote Agents of OSP can now connect directly with the Centralised EPABX/ EPABX of the OSP/ EPABX of the customer using any technology including Broadband over wireline/ wireless.
  5. No restriction for data interconnectivity between any OSP centres of same company or group company or any unrelated company.
  6. It may be recalled that DoT has already exempted Data Based Services from the OSP regulations.  In addition, the regulations exempted OSPs from requirement of any registration.  Also, no Bank Guarantees were to be furnished. Work from Home and Work from Anywhere was also permitted.
  7. Penalties for violations were removed altogether reaffirming the trust Government has in business.
  8. Further liberalization of Guidelines today will provide a big fillip for growth of OSP industry in India.  This will create immense opportunities, income and employment in India.

OSP reforms impact survey conducted by NASSCOM in April 2021, enumerated following important findings : 

  • Over 72% of the respondents mentioned that they are highly satisfied with the OSP reforms
  • 95% of the respondent mentioned has helped in reducing the compliance burden and cost of doing business in India
  • 95% of the respondent also stated that this will help in making IT services more competitive globally
  • Another 77% of the respondent mentioned that OSP reforms has helped in increasing the productivity
  • 92% of respondent stating that reforms also helped in reducing the financial burden on the companies
  • 62% of the respondent mentioned that they will consider expanding their operation or will make fresh investments basis the OSP reforms
  • 55% also mentioned that this will help in generating new employment opportunities and will enhance access to talent

Today’s reform will further help the BPM industry to reduce their establishment cost and creating synergies among different companies. Through these reforms more and more MNCs will get attracted towards India as a favorable destination and hence will lead to more FDIs.

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