Rural BPO’s transform Indian BPO market; contributes $7 million in 2011-12

When a leading Indian BPO company decided to partner with a rural BPO company to service their US logistics client, it raised quite a few eye brows. The rural BPO set a record of 700 filings per man day when compared to their urban partner’s productivity of 650 filing per day, per man day. Rural Shores, a leading rural BPO company in India, is doing this magic from their call centers which they have set up in the outskirts of Rajasthan, Madhya Pradesh and Gujarat.

Rural BPO Voice. Image Source

Rural BPO companies are all set to transform rural India. Infosys was also amazed with the performance of rural BPOs and that is why they turned to Rural Shores to set up the call center for BESCOM, the Karnataka State Electricity Board, to set up a 24 hours call center from the scratch. The process associates of Rural Shores created the magic from the very first day by closing the issues within four hours of customers calling in to the call center.

According to Frost and Sullivan Research reports, Indian BPO industry has generated revenue of $101 billion in the fiscal year 2011-12. The report has forecasted a growth at a compound rate of 5.3% till 2016. The rural BPO has made a contribution of about $5-7 million to the $1.4 billion domestic BPO market in 2011.

Many reports are also giving interesting facts and figures about rural BPO market in India. According to NASSCOM, rural BPOs are expected to generate more than 50,000 jobs for the year 2012. And if, rural BPOs flourish in this manner, it is expected that by 2020, they will create about 10-12 lakhs jobs directly and indirectly. It is also widely seen that, leading BPO companies in India such as Infosys, Wipro, TCS and many others are hunting their talents from small cities in India to achieve cost efficiency in performing transactional jobs like data entry and form filling.

The nature of outsourcing is changing from simple transactional process to complex transformational process, in that context companies are bound to meet the changing needs of their clients without compromising on the service quality and this is possible only by recruiting talents from across various domains. This is where Indian BPO’s are looking at near shoring model.

Rural India has a wide base of untapped pool of graduates, which Rural BPO model expects to leverage for cost and process efficiency.

The more interesting factor is that about 50% of employees in rural BPO are women which indicate the transformation that is taking place in rural India.

It seems like rural BPO is growing at a faster pace and is playing a prominent role in helping the Indian BPO industry to maintain its leadership position in the global market. Indian BPO firms can potentially look at rural BPO’s to server their transactional projects where as they can go for near shoring models to meet the transformational and complex BPO projects.

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