India's massive $283-billion IT services industry is navigating a complex technological transformation, marked by controversial workplace surveillance tools and the long-awaited implementation of a comprehensive data protection law. This shift is redefining the boundaries of employee privacy, consumer rights, and business operations across the country.
The Rise of 'Orwellian' Workplace Monitoring
In a move that has sparked significant debate, the Nasdaq-listed IT giant Cognizant Technology Solutions Corp. has begun training its executives on productivity monitoring software like ProHance. This tool meticulously tracks employee activity by monitoring mouse movements and keyboard strokes. The system mandates that certain employees must move their mouse at least every five minutes and type something on their keyboard every fifteen minutes.
Failure to maintain this level of activity can lead to employees being automatically signed out of their systems, facing reduced billing hours, and potentially receiving formal reprimands from management. The software goes further by measuring time spent on specific applications and websites deemed 'productive,' and it compares an employee's actual working hours against the project's expected production hours.
However, industry experts note that Cognizant is not a pioneer in this field. Other major players, including Wipro and Firstsource Solutions, have already been utilizing similar employee monitoring tools, particularly within customer support functions.
India's Digital Personal Data Protection Act Comes into Force
In a landmark development for digital rights, the Indian government has officially initiated the Digital Personal Data Protection Act, 2023. The electronics and IT ministry established a four-member data protection board, bringing the law into full effect more than two years after it was passed by Parliament.
This new regime gives companies a compliance window of up to 18 months to appoint key personnel, including data protection officers and consent managers. These roles are critical for obtaining explicit user permission before utilizing personal data for purposes like targeted advertising.
A significant provision of the law offers enhanced protection for minors. Platforms are now legally required to seek parental approval for processing the data of children under 18. For safety reasons, the law also permits social media platforms to live-track the location of underage users. A government official, speaking anonymously, addressed concerns about state control over data, stating that no 'strong enough' case was made against the government's data usage during the consultation phases.
Evolving Retail and Telecom Landscapes
The retail sector is witnessing a novel convenience with the rise of 'try-at-home' services. Startups like Mumbai-based Zilo and Slikk are bringing the trial room experience directly to customers' living rooms. Shoppers can order apparel, try it on at home, and return unwanted items. To address logistical concerns, these apps charge a fixed rate for the home trial service, regardless of the number of clothes ordered. Slikk reports that its average order values are notably higher for these trial-at-home deliveries.
In the telecom sector, three of India's largest operators, who are also major internet service providers, have petitioned the regulatory body for cheaper spectrum and longer license periods. They argue that high base prices have left radio waves unsold and that cheaper spectrum is essential for building network capacity in line with the Digital India mission. They have requested that the spectrum usage period be extended to four decades, which would provide clearer business visibility and enable long-term investments in network technology.
Meanwhile, a hiring trend is emerging in the IT sector. Mid-tier IT firms, those with annual revenues between $1 billion and $5 billion, are projected to hire more aggressively than their larger counterparts. This marks a continuation of a three-year trend, fueled by faster growth and a pressing need for personnel on short-term projects. Historical data suggests that firms with higher headcounts in the April-September period typically end the fiscal year with the largest overall workforce.
Other Notable Tech Developments
In the financial technology space, Groww's parent company, Billionbrains Garage Ventures Ltd Additionally, Google is making substantial investments in India's AI ecosystem. The tech giant is exploring the sale of its Gemma AI model to governments and local businesses, offering computing capacity and free access to its cloud services. This initiative is part of a larger $15 billion investment to establish a data centre and a subsea gateway in Vishakhapatnam, Andhra Pradesh.
