India is a key source of outsourced IT services for overseas
entities. These services often comprise critical dependencies for
regulated entities, such as banks and insurance companies. The
majority of these IT services are provided from metropolitan areas
such as Mumbai, Pune, Hyderabad, Gurgaon and Bangalore, which have
all been hit hard by COVID-19. These cities have been put under
lock down until May 3, 2020, with the likelihood of extension (at
least in some form) beyond this date as well.
Under the lockdown, the preferred model for continued IT/ITES
operations has been to implement a 'work from home'
("WFH") policy, and IT service providers
have executed continuity plans based on the WFH model on an
unprecedented scale. Nonetheless, COVID-19 has challenged (and, at
times, disrupted) the ability of service providers to deliver on
the security and service levels originally contemplated under their
contracts.
