Rural Outsourcing In India

Projections of Rural BPO in India by 2013 – 2015

Customers Current Centres Employees Centres Employees
ADF* 1 2 550 NA NA
B2R 3 2 100 100 6,000
DesiCrew 12 5 225 50 5,000
Drishtee 6 -7 2 30 NA NA
eGramIT 15 4 700 30 3,000
Harva 5 3 30 70-100 10,000
NextWealth NA 2 200 40 1,000
RuralShores 12 6 500 500 100,000
Source For Change 4 1 70 200 10,000
SourcePilani 7 1 60 5 500
Tata Group** 4 NA 2000 —– 10,00
Total 26 4,465 925 145,5000

The above List includes only those Companies that have has rural BPO’s for at least a year.
* A large domestic bank’s back office located near Tirupati
** For needs of group companies. About 2,000 of the 7,000 staffers are in rural areas.

What changed BPO’s since 2005

Cost: Costs have shot up in the urban ares like rentals up by 15% to 20% and salaries 20 -30%. Capital expenditure (Bandwidth, Computers) is the same for Rural and Urban centers, while the operating expenditure is rural areas is 30% to 40% lesser.

Clients: Clients from Overseas are open to outsourcing anywhere as long as the service and quality is maintained. Low-end work like data entry is easy is to do. Domestic clients are expanding to rural areas. Example 60% of new mobile connections are sold in rural areas, so they feel a need for back end support.

Connectivity: During early days BSNL had laid down fibre but was found wanting on price, quality and service. Now with private players expanding rural BPO’s have more access at less cost.

Companies: Rural BPO’s is a viable business so BPO companies are adding heads to service their own clients and handle work outsourced by mainstream BPO’s.

In the last 5 years about 50 odd business process outsourcing units have existed. For Example Genpact has outsourced its internal finance and accounts work to rural shores. Another customer of theirs wants them to provide regional – language support.

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