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Business process outsourcing (BPO) is an outsourcing that involves the contracting of the operations and responsibilities of specific business functions (or processes) to a third-party service provider. The business functions might include human resources, finance and accounting, and customer-related services. According to Nasscom, an Indian industry association for the IT-BPO sector, in 2008, India had revenues of approximately $10.9 billion from offshore BPO and $30 billion from IT and other BPO operations. India thus has some 5-6% share of the total BPO industry in the world, but a commanding 63% share of the offshore component.
There are several BPO centres currently located in major Indian cities of Bangalore, Hyderabad, Mumbai, Pune, and New Delhi, which cater to the needs of their clients overseas. According to CNBC TV, India?s BPO sector is growing as more work is outsourced to sweatshops in India to cut cost by global companies. In this regard, the BPO sector has already created over four million jobs in allied services and businesses in India and is spending over Rs 10,000 crore every year in various services to run their businesses.
A majority of the Indian BPOs cater to network and application services. Thus, if your company provides solutions for setting up networking and applications, you are a much-needed commodity for BPOs. According to Desi S Valli, executive director and COO, Net4 India, a company that helps BPO call centres to set up their internal and external communication networks would be looking for profits. According to CNBC TV, the licenses of simple applications to monitor inflow of calls are sold and managed for an estimated Rs 50,000 per month. In addition, hosted model, where IT applications and servers required for the functioning of a BPO is housed at an outside location, is also becoming hot amongst Indian call centres.
Indian BPOs have become pervasive in urban areas; however, these BPOs are now also involving the Indian rural community. According to The Weekend Leader (TWL), Munjdaje, situated 75 km off Mangalore city, is a village that now boasts of a BPO unit and engages those who have been at a disadvantage. The BPO, titled ?chips.ework,? has a workforce of about 25 people who are entirely drawn from the surrounding villages. The company operates from 9 to 5 and has given priority to candidates who had either been rejected by the so-called ?reputed companies? or those who have had average academic background. Some of chips.ework workers are just grade 10 pass outs and have a little know-how of the computer. The man behind chips.ework is 43-year-old Narayan Bhide, a law graduate. According to TWL, Bhide launched chips.ework in July 2011 in the village with a budget of Rs 10 lakh. He was aware that setting up a BPO in a village was fraught with risks, but he was willing to take risks in order to realize his dream of bringing jobs to rural India.
The success of chips.ework has now spread to other BPOs in rural India. According to Youth Ki Awaaz, India?s largest integrated online platform for the youth, various BPO units and entrepreneurs, in order to escape the inconvenience of urban costs, have reached to the rural parts of the country. As a result of this reason, BPOs have cropped across many small villages like Ethakota, Munnar, Tikli Akilampur, Bagepalli, Bagar, Mithapur, Jamuhar to name a few from hundreds. Also, according to Youth Ki Awaaz, a few of the BPOs have only opened for women: One such Indian BPO company is HarVa which is the first of its kind to employ only women from rural set ups. HarVa, which means green, is a rural start up that primarily focuses on skill development, BPO, community based farming and microfinance.
With 70 per cent of India living in villages, the opening of BPOs in villages is a boon for masses. Youth Ki Awaaz believes that BPOs in rural areas might come across obstacles like poor infrastructural facilities, lack of broadband connectivity or electrification; however, several experts believe that they could also be highly sustainable as they are cost efficient. In this regard, rural BPOs provide several benefits. First, according to Youth Ki Awaaz, BPOs have been have proved to be attractive to both the employers and the rural locals as they have empowered the latter to earn and live with dignity. Second, according to Youth Ki Awaaz, these BPOs have tapered the gap between the Tier I and Tier II or III cities and have infused the conceptions of globalisation into India?s rural roots. In addition, as farming in rural areas is seasonal and dependent upon monsoons, BPOs could prove to be an asset to those with seasonal unemployment.
Source: http://www.bpo.biz/bpo-news-blog/2012/08/22/bpo-is-into-rural-india-to-escape-urban-inconveniences/
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