NewswireTODAY - /newswire/ - Ahmedabad, Gujarat, India, 2006/04/11 - The latest issues and news suggest that British Law would harm Offshore Outsourcing India in the near future because of the stiff rules and regulations.

A law established in Britain last week to defend the rights of workforce laid off by overseas services could not only possibly leave Indian BPO service providers with enormous liabilities but could also assist in protectionism capturing root in a country that was so far believed open to Offshore Outsourcing services. The modified Transfer of Undertakings Regulations made operative in the U.K. on April 6 consents that a company transferring portion of its business to another firm must also transfer the deals of services of the employees concerned to the new company. Such rule may hurt the IT Outsourcing Industry very badly.

According to experts, this slaps overseas contractors with legal and financial accountability for the British employees, and could effect in serious adverse economic impact for Indian service providers accepting overseas service contracts from British companies and organizations. According to this regulation Indian BPO service providers could now be compulsorily to negotiate a protection against legal challenges by British employees who lost their livelihood when services were transferred to the overseas locations. This might direct to millions of pounds in problems for many of the services providers. This law could also blow up such overseas service costs for British companies.

Offshore Outsourcing India
This regulatory body has been in existence in the country since 1981 and came in to the occurrence to facilitate employment rights to workers when their employer alters as a result of a transfer of an undertaking or any other issues. But one thing is sure that Offshore Outsourcing India would definitely hurt because of this regulation. Initially the regulations applied to manufacturing firms but now they have been modified to comprise IT Outsourcing services and other Offshore Development activities. IT services will have to seek for the new way to face this legislative issue in this country.

Under the new rules and regulations, if a customer company decides to source their legal development work from a different service provider, the legal unit from the old service provider would be permitted to transmit to the new Offshore Outsourcing service provider under the same terms and conditions as they had earlier.

Agency / Source: TatvaSoft - Custom Software Development India

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