Microsoft revamps governance framework for India's public sector

In a first, Microsoft has overhauled its governance and compliance framework for India’s public sector and critical infrastructure clients -- a move that comes amid growing geopolitical uncertainty and regulatory fragmentation worldwide. 

The announcement follows a recent court battle in which energy firm Nayara Energy had to seek judicial intervention to regain access to its own data stored with Microsoft, after service suspension over sanctions-linked concerns. 

The Redmond-headquartered technology giant said the updated governance model is aimed at reinforcing its role as a “reliable, long-term partner” for India’s strategic sectors — including healthcare, energy, telecom, and financial services — while aligning with national priorities. 

The new set of digital commitments are tailored ‘for India’ and are focused on governance, cybersecurity and AI skilling. These changes were announced at the Microsoft Leaders Forum: India’s Digital Future. 

“Considering the increased geopolitical complexity and global regulatory fragmentation, Microsoft has updated its risk-based compliance framework, which includes validation checkpoints, escalation pathways, and cross-functional oversight to ensure services resiliency. This approach ensures that compliance actions are proportionate, context-sensitive, and legally robust,” Mike Yeh, regional vice president, corporate external and legal affairs, Microsoft Asia, said in its blog. 

Yeh added that Microsoft will enhance transparency in its contracts with clients and strengthen customer assurance. “Microsoft will use best efforts to inform customers of any foreign government orders mandating service suspension, advocate for withdrawal of any such order through legal channels and may seek injunctive relief to preserve service continuity. We also commit to collaborating in good faith with customers to maintain access to their data and minimize business disruption,” Yeh added. 

This move is important for Indian businesses operating in geopolitically sensitive regions. For instance, Russia has sanctions from the US and European Union. Nayara is an Indo-Russian oil refining and marketing company. The firm operates the Vadinar refinery located at Dwarka district of Kutch Vadinar in Gujarat. 

After getting relief from Delhi High Court in getting access to its data from Microsoft, the firm also moved court against German-headquartered SAP as it suspended its software services. SAP told the court that it cannot provide the services as it needed the support of its parent firm. 

Yeh also added that to foster deeper collaboration with India’s public sector and critical infrastructure leaders, the company is establishing a new ‘Customer Council’. This council will be chaired by Puneet Chandok, president, Microsoft India and South Asia.  This strategic forum will enable ongoing dialogue around technology, policy, and contractual frameworks, especially considering the accelerated pace of innovation, rising cybersecurity threats, and the growing demand for sovereign solutions. 

For Microsoft, India is an important market. Satya Nadella, chairman and CEO of the company in January this year had committed an investment of $3 billion and training of 10 million people by 2030.