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India has rapidly achieved the status of being the most preferred destination for business process outsourcing for companies located in the US and Europe. The availability of low cost skilled manpower, a huge English speaking population, and appropriate infrastructure have been the main reasons for these companies outsourcing their operations to India. With the Business Processing Outsourcing (BPO) industry flourishing in India, more and more companies began establishing operations in the metropolitan cities to capitalize on the available human resource talent and physical infrastructure. http://www.bharatbook.com/detail.asp?id=210231&rt=Penetration-of-Rural-BPOs-and-their-Benefit-Analysis.html

However, the prodigious expansion of BPO companies in select metropolitan cities caused intense competition for available talent and this led to frequent poaching of staff. Also, many employees considered a BPO job as a short-term one and opted for higher education or business management studies once they had earned enough money to support their higher education plans. These factors resulted in high employee turnover and in turn increased recruitment and training costs for many BPO companies. ” Company Profiles ”

Due to these factors some BPO companies set up operations in smaller towns and villages. The low cost of operations and lower employee attrition levels are the key benefits that these companies derive from their rural operations. Unfortunately, rural areas in India are plagued with lack of basic infrastructural amenities such as lack of high-speed broadband connectivity. In fact, a majority of the rural areas faces the hindrance of power connection and frequent black-outs for a large portion of the day. Skill up gradation of rural BPO staff is also a critical factor for improving service quality levels. To bridge this gap by initiating development at the village level, and to put rural India on a par with major cities, the Government of India has teamed up with private bodies to ensure availability of education facilities and adequate infrastructure to people in rural areas.

If the above grass roots problems are addressed to a larger scale, the IT-enabled service sector has in itself the potential to bridge the employment gap existing in the rural areas while providing low-cost solutions to the urban and overseas clients. In fact, tapping rural workforce at local levels would also mean controlling overall attrition levels in the industry defined by talent crunch.

Table of Contents:

Executive Summary
An Industry Overview
Advent of Rural BPOs in India
Reasons for Growth of Rural BPOs and gaining prominence
Rural BPO centres provide a ray of hope for smaller towns
Market Size
Reverse Migration in Rural Areas
Key Players Landscape
Revenues & Net Incomes
Some BPOs in Rural Areas
Government Regulations & Reforms for the Sector

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