IT majors in India target rural BPO delivery model

December 07, 2011: In the recent times many major IT and BPO players have turned their attention towards rural areas. The companies have either set up a rural BPO unit or planning to set up a new one in tier 3 and 4 cities.

In the recent time companies such as Wipro, Infosys and Aditya Birla Minacs have focused big time on the rural areas of India. This sudden migration from urban to rural is influenced by various factors. Out of which, the major one to be considered is the manpower cost.

Today the IT and BPO sector generates a total of about 10 lakh jobs across the nation as the demand is still increasing. Well, it is obvious that with increase in demand the cost for manpower will also increase. And to keep a control on the manpower cost, going rural is a better option. Rural cities can deliver well educated graduate within the age of 21 to 25, who can perform well in the BPO.

In recent times, Wipro has build up a BPO unit at Manjakkudi in the state of Tamil Nadu.  It was in the month of August this year. This unit is employing 120 people which will be running with a 50 seat pilot project. The global giant Infosys has also decided to join the party and come up with a small BPO unit in Kaup of Udupi district in Karnataka. Moreover the companies are also planning to set up rural BPO units in the tier 2 and 3 cities in foreign countries too. 

It is not just the companies which are thrilled to set up BPO in the rural area and enrich business. Even the employees in the rural BPO units gave positive feedback on this. People are more excited as they can now grab a decent job near their home. Why to migrate to cities and struggle to get a job in the highly competitive market.

Well, initiating rural BPO units is not as much easier as someone would consider. To go rural, the companies have to face hurdles such as frequent power failures, telecom connectivity issues and transportation problems. Moreover, finding experienced employees are a bit difficult as people with experience prefer to settle in the urban. However, as the trend is picking speed gradually, it is expected that many other global players might join the party which will be an ultimate benefit for the rural people.  

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