Rural BPO gaining ground in State

Despite several challenges and false steps, the concept is key to ensure jobs

Updated - February 25, 2015 05:51 am IST

Published - February 25, 2015 12:00 am IST - CHENNAI:

Around two dozen organisations, including engineering colleges, have approached the State government for permission to open rural BPO units in various parts of Tamil Nadu.

By next month, an NGO, which has already obtained approval, will be opening units in Chengam a taluk in Tiruvannamalai district, Cuddalore and one near Vandalur in Kancheepuram district.

After nearly eight years, the Tamil Nadu government feels that the concept is gradually picking up. “Three new rural BPOs are likely to come up soon as the approvals were given in August 2014. If they flourish, there will be more employment opportunities in rural areas,” a government official wishing anonymity told The Hindu .

Tamil Nadu was one of the pioneers in rural BPO. The State opened the doors to the first RBPO FOSTeRA (Fostering Technologies in Rural Areas) in 2007 at Krishnagiri district. Gradually, colleges in the State came forward to set up small units on their campuses. In 2010, the State came out with its first RBPO policy.

After the AIADMK regained power in 2011, it introduced an enhanced policy with more incentives and capital subsidy. But only one institution – Shivani College of Engineering and Technology in Srirangam – was approved by the government to start a unit under the new policy. In June 2013, it began operations.

“In the beginning, there were 40 employees. Now, it has about 100,” says an official from ELCOT, adding that the college has planned to open one more unit. 

Poongothai Aladi Aruna, former IT Minister, says more big players should set up rural BPO units. The present government has not captured the concept in the right way. They can utilise the vacant SEZs in places like Tirunelveli for setting up the units, she said.

Industry critics, meanwhile, say that the rural BPO had not really taken off in Tamil Nadu, as there were several challenges that need to be addressed.

“The State has slipped, while our neighbours have moved ahead in a quick span of time. Many units started only to close down in a few months. The government is not actively promoting this concept. They don’t even have a proper database,” said a CEO of a rural BPO.

When asked about the number of rural BPOs, closed as well as existing, a senior government official said, “Rural BPO started making headlines only in 2007. So let’s give it another five years,” he said.

“It created employment opportunities for thousands of students in rural areas who otherwise would find it difficult to get a job. These candidates are paid anywhere between Rs 4,000 to Rs 7,000 per month,” he emphasises.

Nandini Rangaswamy, founder trustee of Coimbatore based  GRG Trust, who kick-started a rural BPO unit in a remove place – Masinagudi in Mudumalai forest fringes in 2010  – also feels that as time goes rural BPO would create a good impact in rural pockets. “Currently, 18 girls are employed. There will be 30 in a year,” she says.

J K Manivannan,  Chief Executive Officer of DesiCrew, another rural BPO, says, “Tamil Nadu has abundant supply of graduates and diploma holders. We have observed that youngsters prefer working in villages than migrating to cities.”

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