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Rural BPOs shining amidst dark clouds of recession
The BPOs set up by the Indian corporates in rural India are an oasis of relief to the much harried industry, so much so that even the software industry leaders acknowledge that the next revolution will happen in rural sector
THE GLOBAL financial recession has hit the industry and corporate world hard, both in India and abroad. Companies are shedding employees, cutting costs and infact the hiring has been almost put on hold but there is a silver lining here as well.

Shining like a knight in the armour is the slowly emerging Business Process Outsourcing (BPO) industry in the rural heartland of India. Good news for India is that BPO firms established in the rural areas are posting growth, there is less attrition and low turnover as well, a dream for the urban counterparts.

It is pertinent to mention that BPOs in the metropolitan cities, which were epitome of high growth jobs and big ticket salaries are facing a slump. Primarily catering to the American market, the Indian BPO industry is facing trouble as it’s main customers like global banks and financial giants are falling like nine pins.

In such a desperate situation, the BPOs set up the Indian corporates in rural India are an oasis of relief to the much harried industry, so much so that even the software industry leaders acknowledge that the next revolution will happen in rural BPO sector.

NASSCOM member Ashok Desai, in a recent conference in Ahmedabad said that the next revolution in Indian Information Technology (IIT) sector could happen in rural BPO sector. Why every one is betting on the rural sector is the fact that rural BPOs in Haryana and Karnataka have managed to cut down on cost and the employee attrition is also low due to various local reasons.

One of the most successful experiments in rural BPO sector has been done by the HDFC bank, which established a back office operation in Nellore and that proved to be a major success. The bank thus decided to set up one of the largest BPOs in banking sector at Tirupati in Andhra Pradesh.

HDFC bank said that this was an attempt to take the opportunities to the rural doorsteps through economically viable projects. It is not that the bank is doing all this for philanthropy but the project follows plain business logic.

An employee working at a rural BPO is paid around Rs 3500 per month whereas for the same kind of work, a corporate will have to shell out at least Rs 9,000 even in tier I city. The industry also saves huge money on account of real estate as it is quite cheap compared to the urban areas, particularly the metros. A big positive is the very low attrition rate in rural BPOs, which stands around five per cent; the rate is 30 to 40 per cent in urban centres.

The salary of Rs 3,500, which a rural BPO sector employee gets at an average has helped in improving their standard of living. Majority of the employees being locals continue to work as agriculturists, farmers, milkmen and so on and so forth.

For the rural folks, the promise of a safe and regular BPO job in their own villages is of great value and for the corporates constantly looking to better efficiency and productivity, rural India offers a huge benefit in term of cost cutting and revenue generation.

With India continuing to grow as a major outsourcing hub, it in increasingly becoming clear that the BPO industry will increasingly push to the rural areas.

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.Thank you for writing this article. The topic of rural BPOs is extremely relevant right now. I am currently involved with a venture that addresses this very issue. I have the honour to work alongside the women of Source for Change (SFC). SFC delivers high quality deliverables to global clients while creating IT-based jobs with women in rural India. For the past year, 10 courageous women have been working on data entry and digitization projects in the small town of Bagar in Jhunjhunu District of Rajasthan. Currently, we are seeking to employ 40 additional path-breaking women at this very center. Several rural companies operate in the IT sector as we do. To employ women exclusively is our differentiator. The benefits are both social and economic. There is a business case because we have found that women are more loyal to the company and are more detail-oriented. The social case is creating jobs in the India within India and focusing that towards women who are more likely to spend their savings on their family. In this manner, both our clients and our employees win. Be sure to check out our website at: www.sourceforchange.in
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