By Sumeet Doshi
India’s information technology (IT) and information technology-enabled services (ITeS) industry accounted for 7.4% of India’s GDP in FY22, and is contributing significantly to the country’s economic growth. Going in tandem, the IT and ITeS sectors in India have emerged as key players in the global economy.
Global compliance refers to the practice of businesses ensuring their adherence to all relevant laws, regulations, standards, and rules across different countries and jurisdictions around the world. Maintaining global compliance is critical for Indian companies to sustain themselves in the international market and avoid legal and reputational risks. It also essential to ensure sustainable operations and build trust with stakeholders, including customers, investors, as well as employees. Therefore, it is imperative for companies to stay updated with all compliance-related rules and regulations of the country they’re operating in and strictly adhere to them.
Contextualizing Compliance
When it comes to Indian IT/ITeS companies operating on a global scale, the risk of non-compliance can result in hefty fines and a tarnished reputation that can be really difficult to recover from.
The issue of compliance, more often than not, can be extremely complex for organizations to navigate through. They need to be mindful of the different sets of compliance rules governing the different regions, states, and countries where they operate from. In the state of California in the USA, companies are required to give an unpaid meal break lasting at least thirty minutes for every five hours of work to their employees. While employees can voluntarily choose not to take this break, if they are being asked by the employer to work during this period, they have to be adequately compensated for it. The difficulty arises when an employee complains that they were made to work during their allotted break time and were not paid for it by the company, which is a breach of statutory regulations. This lack of transparency between the employer and employee can negatively impact both parties, resulting in heavy penalties for one and unintended exploitation of the other.
The constantly changing regulatory landscape of different geographical regions, states, and nations continues to impede the growth of major Indian IT and ITeS companies that have the potential to expand globally. To keep pace with regulatory requirements and execute a proactive strategy that reduces risk, supports your people, and creates a competitive advantage.
Achieving Compliance Agility
Compliance requires a proactive strategy to keep pace with quickly changing laws. Modern workforce management (WFM) solutions can help organization reduce the risk by helping them stay flexible, automate processes, and anticipate trends before they happen. A good WFM solution can help organizations streamline compliance processes by:
- Automating the pay, time, and HR regulatory standards
- Align faster to the newest labour law changes — from local to global
- Create more future-ready policies around DEI&B, company culture, and employer branding
With the world at the cusp of a revolution caused by artificial intelligence (AI), it is only natural that organisations benefit from AI tools that can help them navigate the most complex challenges posed by compliance laws. For Indian IT & ITeS companies that have offices in other nations, these AI tools can help bring peace of mind for their local Human Resource (HR) executives and managers by getting them stay ahead of the curve of regulatory changes by bringing in expertise of attorneys across the globe. By being aware of these upcoming regulatory changes and their possible impact, companies can proactively start drafting and implementing policies that are in keeping with these new regulations before they even become effective.
Empowering Indian IT/ITeS through AI-powered Workforce Management Solutions
While there is no one-size-fits-all solution to global compliance complexities, investing in workforce management solutions can help organizations achieve compliance in a cost-effective and efficient manner. By investing in the right tools and resources, organizations can build a culture of compliance and ensure that they are meeting their legal obligations while maintaining a productive and engaged workforce. Leveraging WFM technologies is vital for Indian IT/ITeS organizations operating globally to comply with constantly evolving labour laws across the globe. This also enables our IT/ITES organisation to easily grow across newer geographies.
The author is country manager,India, Ultimate Kronos Group (UKG)
