Friday, July 17, 2009

Business process outsourcing

The business process outsourcing industry in India refers to the Services Outsourcing Industry in India, catering mainly to Western operations of MNCs Multinational Corporations. American financial meltdown has begun to take its toll on India's IT and outsourcing business.

Booming India Inc has led to skyrocketing real estate and infrastructure costs. Increasing infrastructure costs, real estate costs, and salaries have raised BPO costs significantly and as a result Indian BPOs in Tier-1 cities are looking at Tier-2 and Tier-3 cities for operation.

Few entrepreneurs who had a vision of bringing the rural India into the mainstream of knowledge economy have found an opportunity here - setting Rural BPOs. The related Industry dependent on this are Catering, BPO training and recruitment, transport vendors.

The transformation of rural India started with the emergence of these Rural BPOs. The major hurdles that these BPOs faced are quality man power. As a result these rural BPOs have remained targeting low end jobs like data entry home pick up and drops for night shifts being the norm in the industry.

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