A Report on Rural BPOs in India

India has attained the status of being one of the most favored destinations for outsourcing operations from the western countries, due to the presence of low cost, skilled labor and appropriate infrastructure.

As the number of business process outsourcing (BPO) and information technology enabled services (ITeS) providers have increased in major cities such as Mumbai, Delhi, and Bangalore, they has been an intense competition for quality manpower in those cities.

This frequent poaching and high attrition resulted in increased recruitment and training costs.

The establishment of BPOs in villages is expected to result in the development of rural infrastructure, increase in standard of living, and generation of sufficient employment opportunities at the village level.

All this could effectively address the problem of people migrating from the villages to cities in search of work.

But rural areas are dogged by problems such as under-developed infrastructure, lack of basic amenities, and low-skilled workforce. Both the private sector and Indian Government are taking initiatives to remove these deficiencies in a gradual and phased manner.