Growing Domestic Market Encourages “Ruralshoring...

Considering the future growth prospect of the Indian domestic BPO market many companies are now trying to set their foot in the rural areas of India. They are investing millions of rupees in order to build infrastructure there. These companies are also trying to use the local language to reach the local and regional customer base.

That is why many of these companies are now seeking employees who know regional languages like Maithili, and Bhojpuri. These companies are making sure that people running the helpdesk in these villages can communicate with the local population in their own languages, because this will help the companies to gain a penetration in the deeper parts of these villages.

Right now the domestic BPO industry in India is worth $ 2 billion that is 40 percent more than what it was last year. This is even likely to increase to $ 6 billion by the time 2012 ends. Most of the revenues that are generated through these domestic BPO services have come through the finance and the banking industries. That is why banking companies like HDFC are ready to invest a lot of money in the villages of Tirupati.

There are BPO companies as well that are trying to establish there base in suburbs like Durgapur and Shimoga. These companies include Xchanging, and Hinduja Global Solutions.

Chemical manufacturers too are shifting their back office jobs in these rural areas. Tata Chemicals is one such company. Its back office jobs are done from villages in Uttar Pradesh and Gujarat. Both of these are major Indian states.

HDFC is currently using the services of RuralShores Business Services, a BPO company situated in Bangalore. The banking giant also is a 24 percent shareholder in that BPO company. This whole BPO endeavor by these big companies has helped in the coining of a new term “ruralshoring”.

This current and popular trend is supposed to establish a link among 500 places. This will definitely increase the business of these companies as well as the reach of the Indian domestic BPO services.

This will definitely create job opportunities in these villages, which is something really positive considering the ongoing recession. The total cost of investment is supposed to be in the range of 4 to 5 million INR.

However, experts believe it will need a lot of planned execution to make this whole process a success. But most of them are sure that this new model has the potential to be successful.