Indian BPO Operations expanding to rural areas

August 28, 2011: BPO companies in India are always looking at means to expand their business leveraging the inherent strengths of Indian economy and resources skills available here. Rural expansion is now a new trend which is emerging now.

BPO firms have initiated migration of their operations to lower cost destinations to tap the vast pool of talented and educated cheap labor available in the rural areas of India. Companies find that there is immense educated work force available in there with increased number of education institutions run in the rural areas. 

It is one among the top leading company Wipro, who took the first step to start operating from much cheaper area. The company has started a new rural BPO center at Manjakkudi Village in Tamil Nadu which has the capacity of 120 seats. More over the company is planning to begin one more unit with a capacity of 500 seats in Tamil Nadu in the near future. The company has initiated this shift to exploit the availability of more than 13000 graduates and around 46 colleges in the area.

Shifting towards rural area and opening a unit there has innumerous number of gains for any company. It is much more like a give and take policy. Today most of the education institutes are located in the rural areas. The number of graduates and post graduates passing out from colleges in the rural area is also very high.

BPO companies have understood the fact that most of the graduates and computer engineers working in the BPOs located in cities hail from villages. Moreover the companies realized that the big problem in the rural area is availability of proper infrastructure, if this problem is minimized or eliminated with providing infrastructure then it will be very easy to reach young talented graduates in the villages with aspiring vision to join Business Process Outsourcing units. In fact, a rural BPO can even employee an under graduate with average communication skill at a lesser remuneration. It is pretty difficult to maintain an under graduate for long run, especially in cities like Bangalore, Chennai, Delhi and Mumbai as the retention rate of under graduates is high is these cities.  

The BPO companies require a conductive environment to grow and rural areas are very well equipped to deliver such an environment. The fundamental requirement for any BPO or service provider is availability of cheap labor and skilled employees. The rural area is very rich in this and can fulfill the requirement of these companies.

Wipro might be the first Indian BPO company to take such a big decision, but it is anticipated that many other firms are planning for adopting this strategic decision. The companies have realized about the untapped treasure of cheap educated labor available in the rural areas.




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