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Flexible Hybrid Working Model in SEZs for IT-BPM industry on a long-term basis
Flexible Hybrid Working Model in SEZs for IT-BPM industry on a long-term basis

October 23, 2024

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Based on extensive feedback received from the industry requesting for continuation of this policy on a long-term basis (rather than seeking for extension annually), nasscom made a representation to MOCI.

 

We stated that hybrid work model was a response to the unprecedented situation created by the onset of the life threatening COVID-19 pandemic 2019, however, it has now been over four years since the government and the industry has experienced a remote cum hybrid work model in the SEZs. The experience has been hugely rewarding for all stake holders i.e. the industry, the employees and the government and most importantly and collectively as a country. This can be summarised in the following points:

 

The companies have experienced that the present policy of hybrid work model has given the employees the flexibility and ease in working and has also resulted in many employees coming back to office in comparison to previous year. The initial concerns of the companies that employees would not come back to offices have been addressed to a large extend through various policies enablement by the employees to encourage the employees to adopt a balanced hybrid work model. The industry has been very particular to not impose measures that may disrupt operations and/ or increase attrition. Overall, this evolution of the hybrid work model has resulted in flexibility, diversity, inclusion, talent retention and sustainability. The

 

Global Capability Centres (GCCs) also today see the hybrid working model as a positive aspect of India’s SEZs and this is seen as an important feature of ease of doing business.

 

Today, the robustness of the hybrid model is also evident in our performance during the FY 2023-24. Despite a global economic slowdown that has impacted various sectors, the IT-BPM industry has demonstrated remarkable fortitude and growth. According to nasscom’s Strategic Report 2024, industry revenues are expected to reach $254 billion, representing a year-on-year growth of 3.8%. The industry continues to be a net hirer, adding 60K employees in FY 2024.

 

Another important observation is that most of the companies have been able to retain their SEZ premises and there is expansion in utilisation, despite adopting a hybrid work model. Industry’s current hybrid work-related practices were also highlighted in the representation.

 

Government has directly witnessed over four years of remote and hybrid working. It is with great satisfaction we note that any initial concerns of misuse of the remote/ hybrid working model to take any unintended benefit of the SEZ provisions or misuse the benefits available in the SEZs, that might have been there, have not materialised and there has been no loss to the exchequer, to the knowledge of the industry. This should generate confidence in considering the hybrid model as the way for the future in the SEZs.

 

We also stated about the unintended consequences that could arise if the hybrid work model is disrupted including competitive differentiator between SEZ and DTA, loss of efficiency and productivity and impact on ease of doing business.

 

Nasscom’s recommendation:

Given that the benefit of the hybrid work model in SEZ for IT-BPM industry, far outweigh any concerns, the government should consider this model to be a long-term feature of the SEZs to enable ease of doing business and to promote ease of living.

 

For more information, please reach out to vertika@nasscom.in or tejasvi@nasscom.in with a copy to policy@nasscom.in.

 


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Vertika Misra
Director - Public Policy

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