Journal of Business & Economic Policy

Indian ITES Industry Going Rural: The Road Ahead
Snigdha Majumder, Dr. Rajendra Prasad Sharma

Abstract
Indian ITES industry has witnessed huge growth over the last decade. Now the need of the hour is to sustain its leadership position and cost competitiveness. BPO services in metro cities now seem to be focused more on highend knowledge based services while there has been a silent shift happening to Tier II, Tier III cities and rural areas. Rural Outsourcing as the new buzz in the ITES industry in India, can be a potential solution to sustain cost competitiveness of India. One of the biggest benefits that rural BPO services bring is employment to villages and small towns. They also mitigate the risk of BPO jobs moving to alternate locations like Philippines, South American countries etc., thus ensuring the growth of BPO in India. A huge chunk of the local population also gets employment in a hi-tech sector that is otherwise not present in big numbers in rural locations currently. This paper tries to study the opportunities and challenges of Rural outsourcing. The authors have used both primary & secondary sources of data to analyze the current status of Rural outsourcing in India.

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