Starting A Bpo In India

The development of technology, the growing affluence of developing nations and the reduction in international trade barriers has created many organisations with a footprint across the world. The growth of international trade and technology has also led to increased competition, resulting in organisations looking for ways to reduce their cost and increase competitiveness. In this context, India has emerged as a Business Process Outsourcing(BPO) power-hub on the back of a strong English speaking population and a talented pool of people. The Indian BPO industry is estimated to be around $20-billion and is expected to clock a double-digit growth of around 12-15%, for the financial year 2013-14. Therefore, there still exists plenty of opportunity in the Indian BPO industry, and many Indian and Foreign Companies are looking to establish BPO / Call Centers in India. In this article, we look at the rules and regulations that concern the starting up of a BPO / Call Center facility in India.

Business Constitution

BPO service providers who provide service like telebanking, telemedicine, tele-education, tele-trading, e-commerce, call centre, network operation centre and other IT Enabled Services, by using Telecom Resources are required to obtain an “Other Service Provider” (OSP) registration by applying to the Department of Telecommunication. One of the criteria for obtaining OSP registration is that the entity applying for the OSP Registration be a Company registered under the Companies Act. Therefore, it is recommended that all businesses that wish to establish a call centre / BPO be established as a Private Limited Company or Limited Company under the Companies Act.

OSP Registration

OSP Registration is a must for service providers who provide service like telebanking, telemedicine, tele-education, tele-trading, e-commerce, call centre, network operation centre and other

IT Enabled Services, by using Telecom Resources. To obtain OSP Registration, make an application to the Department of Telecommunication in the requisite format along with the supporting documents. The following are the documents that have to be submitted along with the application fee of Rs.1000/-:

Certificate of Incorporation issued by Registrar of Company
Memorandum and Article of Association
Board resolution or Power of Attorney authorising the authorised signatory with attested signatures.
A note on the nature of business/activities of the proposed OSP List of present Directors of the Company.
Present shareholding pattern of the company indicating equity details

In case a service provider wishes to share the infrastructure between an International OSP and Domestic OSP, the facility must be at least 50 seaters, and the entity must also furnish bank guarantee to the Department of Telecommunication. The amount of bank guarantee for the application will depend on the establishment of the call centre architecture. Once the application is accepted and registration is granted, the registration will be valid for 20 years unless otherwise explicitly mentioned in the registration letter. OSP Registrations are location-specific; therefore, more than one registration may be necessary if the applicant has operations at multiple locations.

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Frequently Asked Questions

Common questions about Starting a BPO in India: OSP Registration & Regulations.

An OSP (Other Service Provider) registration is a mandatory requirement for entities that provide services like telebanking, telemedicine, tele-education, tele-trading, e-commerce, call centers, network operation centers, and other IT-enabled services using telecommunication resources. It is necessary to obtain this registration from the Department of Telecommunication in India to legally operate a BPO or call center facility in the country.

The primary eligibility criterion for obtaining an OSP registration is that the entity applying for it must be a company registered under the Companies Act in India. Additionally, the applicant must submit various documents, including the Certificate of Incorporation, Memorandum and Articles of Association, Board Resolution or Power of Attorney, shareholding pattern, and an application fee of Rs.1000.

Yes, OSP registrations are location-specific. If an entity has operations at multiple locations, it may need to obtain separate OSP registrations for each location.

Once granted, an OSP registration is typically valid for 20 years unless otherwise explicitly mentioned in the registration letter.

To obtain an OSP registration, an entity must submit an application to the Department of Telecommunication in the prescribed format, along with the required supporting documents and an application fee of Rs.1000. The application is then reviewed, and if approved, the registration is granted.

Yes, if a service provider wishes to share infrastructure between an International OSP and Domestic OSP, the facility must have at least 50 seats. Additionally, the entity must furnish a bank guarantee to the Department of Telecommunication, the amount of which will depend on the call center architecture.

It is recommended that businesses wishing to establish a call center or BPO in India be structured as a Private Limited Company or Limited Company under the Companies Act.

The article highlights that India has emerged as a BPO power-hub due to its large English-speaking population and a talented pool of people. Additionally, the Indian BPO industry is expected to experience double-digit growth, providing ample opportunities for new entrants.

According to the article, the Indian BPO industry is estimated to be around $20 billion and is expected to clock a double-digit growth of around 12-15% for the financial year 2013-14.

The OSP registration covers services like telebanking, telemedicine, tele-education, tele-trading, e-commerce, call centers, network operation centers, and other IT-enabled services that use telecommunication resources.