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Rural BPO - Expanding Horizons


BPO companies are now trying to benefit from the untapped talent available in the rural areas by setting up rural BPOs. Few have already setup centers and others are exploring the option. Opening of rural centers is a win-win for both companies as well as residents of rural areas.

Key Benefits for companies are:

         Cost advantage: Salaries paid to employees in rural areas is less compared to urban areas. Infrastructure costs are also less.

         Low Attrition: Employees in rural areas are less likely to quit due to less opportunities in their area

         Talent pool: BPOs would be able to tap the segment of talent pool which is not ready to relocate to urban areas.

         Faster Hiring: Companies are taking BPOs to talent pool in rural areas instead of bringing talent to BPOs in urban centers. This would result in faster hiring.

Benefits for Rural areas and residents are:

         Job Opportunities - Educated local residents get better job opportunities without any need to relocate. Women who were unable to relocate and work have a great opportunity with opening of rural centers.

         Business opportunities - Every company would need infrastructure, transport, security, internet and other service. This would open opportunities for vendors providing those services

         Rural call centers create indirect jobs associated with these vendors

         Development of IT infrastructure For example: better internet connectivity would be available for local residents

Companies like Wipro, Infosys, Tata etc have already setup BPOs in rural areas.

Expansion of domestic markets in rural areas is another reason for setting up BPOs there. Number of mobile subscribers in rural India is growing at a rapid pace. Companies are setting up domestic BPOs to cater to those subscribers. This is highly cost effective.

HDFC Bank is another company which has setup a Rural BPO. The motive of setting up such centers is reduced training and recruitment costs owing to low attrition.