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Rural India : Next Destination For BPOs?

Posted by Varsha Bhagchandani
Next-Destination-For-BPO-industry

BPO industry has become the face of globalized India. It continues to be one of the leading offshoring destinations for the IT BPO services. According to the latest statistics from Business & Economy, India accounts for about 60% of the total offshore delivery capacities for the leading multinational companies worldwide. According to CRISIL-NASSCOM report, the size of Indian BPO industry has expanded by over 15 times. The sector provides employment to about 4.5 million people annually. The report further suggests that the country accounts for more than 5% of the technology services and products across the globe.

BPO revolution is now heading towards the rural India to deliver better services to companies at lower cost. It will also generate more job opportunities in villages, and Tier III and IV cities. In fact, 60% of the call center employees in the rural call centers are women. 

Factors Triggering Rise of Call Centers in Rural India

Following are the underlying benefits of setting-up BPOs in the Tier 2 and Tier-3 cities, villages, and towns:

1. Lower Costs : As the country is striving for major contracts from software companies as well as its emergence as one of the leading IT service providers, rising infrastructure costs in big cities has become a critical component. This invariably affects the total cost of call center services in India, which currently has been rising sharply. This compelled organizations to set-up BPO centers in the village areas, which are exceptionally cheaper.

2. Reverse Migration : With the evolution of Legal Process Outsourcing (LPO) and Knowledge Process Outsourcing (KPO) jobs in the cities, data entry jobs as well as data processing services have become non-competitive and non-challenging to highly educated and qualified professionals in the cities. This has further triggered a shift of such jobs to towns and villages.

3. Low Attrition Rates : Rural BPOs, in comparison to the urban areas, are less affected by attrition problems. Indeed, attrition rates are almost negligible in the rural BPOs. This is one of the important reasons for the shift of call center jobs to rural areas. 

4. Roadmap Ahead : A lot of untapped potential in rural India creates new opportunities for businesses exploring and restructuring their business models. Leading BPO companies like Wipro, Piramal Foundation, Firstsource Solutions, HDFC, and Tata Group are partnering with local NGOs and existing small BPOs to increase their presence in the region. The rise of rural BPOs in the country is expected to help businesses in implementing best practices for greater service efficiencies. Thus, organizations are expected to serve their clients in a better way.


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