India's peak IT body tells outsourcers to check contract cancellation fine print while COVID-19 reigns
(2020/03/24)
- Reference: 1585036630
- News link: https://www.theregister.co.uk/2020/03/24/nasscom_india_covid_19_advice/
- Source link:
NASSCOM – India's peak body for the IT and business process outsourcing industries – has advised its members to read the fine print in their services contracts so they understand the implications of a long lockdown that leaves them unable to deliver.
The National Association of Software and Service Companies (NASSCOM) is an influential body in India as its members include both the country's outsourcing giants and global concerns that have made big investments in India, such as IBM, DXC and Google. NASSCOM [1]claims a symbiotic relationship with India's government in terms of policy development and industry promotion.
With India in national lockdown, it's therefore no surprise that the association's guidance, [2]issued [PDF] on Sunday, recommends "in the next 2-3 days, please shift all equipment (desktops etc) from your offices as necessary to enable your employees to work from home. Test all the networks and preparedness to ensure business continuity. Do keep your clients updated on all the steps you are taking to ensure confidentiality as per the terms of your contract."
The guidance is mostly positive and sensible: it recognises that some staff will need to break India's [3]national curfew in order to keep technology services and infrastructure running and advises seeking curfew exemptions only for mission-critical work. And it recommends that staff asked to attend the office be told "why their contribution is important and how the organization is looking after their safety and health" and offered escalation procedures so that staff feel safe.
The association also advises checking customer contracts – or asking customers to make sure they're happy to have some of their data and/or systems accessed at workers' homes.
But its fifth point of advice could get customers nervous:
"This situation being a potentially extended one with possibility of complete lockdown, companies are advised to consult their legal experts and examine all contractual clauses including force majeure applicability to their customers."
Which is sound advice. But also – yikes!
The Register has searched for continuity information from HCL, Infosys, Tata Consulting Services and Tech Mahindra, and asked all to explain the continuity plans they're offering clients.
A statement sent to The Register by Tech Mahindra quoted MD and CEO CP Gurnani as saying: "We are also putting a robust business continuity plan – powered by next-generation technologies – in place to combat the situation, while ensuring safety of all." No detail on that plan was offered.
Wipro's site offers a [4]detailed outline dated March 20, spelling out four levels of work-from-home security on offer to clients and the requirement for customers to approve adoption.
HCL's [5]March 12 advice says it has invoked its contingency plan but doesn't offer specific guidance to customers.
We're yet to hear about policies from Infosys or Tata. A search on Infosys's site produced the blackly amusing suggestion we should search for "Automation" instead of "coronavirus".
[6]
Click to enlarge
The Register will update this story if we learn more from the five mentioned outsourcers, NASSCOM, or other service providers. ®
[1] https://www.nasscom.in/about-us/what-we-do/policy-advocacy
[2] https://www.nasscom.in/sites/default/files/uploads/corona/NASSCOM_Advisories_Coronavirus_March_2020.pdf
[3] https://www.theregister.co.uk/2020/03/23/india_electronics_industry_subsidies_policy/
[4] https://www.wipro.com/blogs/wipro-insights/covid-19-updates/
[5] https://www.hcltech.com/newsfeed/covid-19-update
[6] https://regmedia.co.uk/2020/03/24/infosys_coronavirus_search.jpg
The National Association of Software and Service Companies (NASSCOM) is an influential body in India as its members include both the country's outsourcing giants and global concerns that have made big investments in India, such as IBM, DXC and Google. NASSCOM [1]claims a symbiotic relationship with India's government in terms of policy development and industry promotion.
With India in national lockdown, it's therefore no surprise that the association's guidance, [2]issued [PDF] on Sunday, recommends "in the next 2-3 days, please shift all equipment (desktops etc) from your offices as necessary to enable your employees to work from home. Test all the networks and preparedness to ensure business continuity. Do keep your clients updated on all the steps you are taking to ensure confidentiality as per the terms of your contract."
The guidance is mostly positive and sensible: it recognises that some staff will need to break India's [3]national curfew in order to keep technology services and infrastructure running and advises seeking curfew exemptions only for mission-critical work. And it recommends that staff asked to attend the office be told "why their contribution is important and how the organization is looking after their safety and health" and offered escalation procedures so that staff feel safe.
The association also advises checking customer contracts – or asking customers to make sure they're happy to have some of their data and/or systems accessed at workers' homes.
But its fifth point of advice could get customers nervous:
"This situation being a potentially extended one with possibility of complete lockdown, companies are advised to consult their legal experts and examine all contractual clauses including force majeure applicability to their customers."
Which is sound advice. But also – yikes!
The Register has searched for continuity information from HCL, Infosys, Tata Consulting Services and Tech Mahindra, and asked all to explain the continuity plans they're offering clients.
A statement sent to The Register by Tech Mahindra quoted MD and CEO CP Gurnani as saying: "We are also putting a robust business continuity plan – powered by next-generation technologies – in place to combat the situation, while ensuring safety of all." No detail on that plan was offered.
Wipro's site offers a [4]detailed outline dated March 20, spelling out four levels of work-from-home security on offer to clients and the requirement for customers to approve adoption.
HCL's [5]March 12 advice says it has invoked its contingency plan but doesn't offer specific guidance to customers.
We're yet to hear about policies from Infosys or Tata. A search on Infosys's site produced the blackly amusing suggestion we should search for "Automation" instead of "coronavirus".
[6]
Click to enlarge
The Register will update this story if we learn more from the five mentioned outsourcers, NASSCOM, or other service providers. ®
[1] https://www.nasscom.in/about-us/what-we-do/policy-advocacy
[2] https://www.nasscom.in/sites/default/files/uploads/corona/NASSCOM_Advisories_Coronavirus_March_2020.pdf
[3] https://www.theregister.co.uk/2020/03/23/india_electronics_industry_subsidies_policy/
[4] https://www.wipro.com/blogs/wipro-insights/covid-19-updates/
[5] https://www.hcltech.com/newsfeed/covid-19-update
[6] https://regmedia.co.uk/2020/03/24/infosys_coronavirus_search.jpg
It is always bad when the contracts come out
Flak
A wise former colleague once said that contracts should be carefully written and then put in a drawer, with both parties acting in good faith based on the spirit of the agreement.
When a contract comes back out of the drawer, it is because the relationship has shifted and it needs to stand up to scrutiny.
From personal experience I have learned that at that point it will be hard, if not impossible, to change the terms to both parties' satisfaction.
Contingency plans
Doctor Huh?
"We are also putting a robust business continuity plan – powered by next-generation technologies – in place to combat the situation, while ensuring safety of all."
I can translate this into current American vernacular:
"We have a beautiful plan. A strong plan. The best plan."
Re: Contingency plans
steviebuk
And "A plan that I thought of first, before anyone else".
Expectation
i'd expect their staff to work from home if possible and customers should expect degraded service.
There will also be an uptick in fraud as criminals take the opportunity to exfiltrate data from previously securely controlled (as in staff hand over phones etc before entering the work room and no data is allowed out of those rooms except via the controlled systems) systems.
there is no point taking undue risk.