The main advantages enjoyed by the owners of rural BPOs are lower investment in infrastructure, lower salary and they are not affected by huge attrition as in the case of urban BPOs. They are not worried over other overhead cost such as transportation and cafeterias. Since back office works does not create huge revenue, it is better to route such work to rural BPOs where the cost is much lower.
Recent studies have found that, work force in the rural areas is far more loyal to their jobs than those in the urban areas. While attrition in BPOs in metros is about 25 per cent, it is 5 per cent in the case of rural BPOs. This helps in reducing the spending required for hiring and training. Employees in rural BPOs earn between Rs 4000 to Rs 8000 and they do not demand any fringe benefits from the employers.
Rural BPOs have helped educated people to improve their living conditions by providing them with a decent job. The people in the rural areas need not leave their places to find a means of living. The monthly salary they earn has helped them to lead a better life, and has made them financially stable and to an extend self sufficient. It has also reduced unemployment in the rural areas to a certain extent.
Even though the salary paid to them is less than half of what is paid to those in the urban areas, it is more than enough for them as the cost of living is much lower. With people in the rural areas focusing more on education, the BPO companies are able provide quality service in the areas of medical transcription, data entry and other low end jobs.
Rural BPOs now play a major role in realizing the dreams of Mahatma Gandhi, father of our nation. Gandhi dreamt of an India where people in the villages are economically self sufficient and are not dependent on cities to lead a better life.
Rural BPOs is for sure an employment creator in the rural areas, which will definitely grow in number in the years to come. Different state governments have announced incentives and benefits to rural BPOs will make rural areas a hot destination for the BPO works. This will pave way for the development in the rural areas which will bridge the divide between villages and cities and rich and poor. It will increase the per capita income of Indians and thus contribute to the GDP of the nation.