TatvaSoft

Outsourcing to India Gets Cheaper As the Service Providers Turn to Rural Economies

As the outsourcing to India industry matures, companies are readily shifting their offices to rural areas where they get an access to cheaper labor and eliminate the unproductive possibilities found in the employees in the big city offices.

 

Ahmedabad, Gujarat -- (SBWIRE) -- 06/26/2010 -- As the business of outsourcing to India grows in stature the service providers in India find innovative ways to offer competitive priced business processing outsourcing services and solutions to the clients abroad. One popular trend that has waved around the Indian outsourcing industry is setting up offices in rural areas of the Indian districts. This strategy brings in two significant profitable assets for business development – cost effectiveness and tradition.

Cost effectiveness because the rural economies can support low budgets easily. The major difference being in the mean salaries of the city-based BPO executives and the service men in the inner Indian parts, companies can waive off up to USD 50 per employee per month. This is a significant saving when aggregated of more than a 100 employees! Another benefit that the companies enjoy is the fresh environment free of toxicants which improves productivity multiple folds. The electricity bills are smaller with respect to the city offices and even the infrastructure is economically set up. The employees get to return back home after their day’s service which may not be possible among the big city employees. This may be negated by the fact that the training costs are higher as often the households of the employees have never seen a typewriter let alone a computer, hence they lack the basic computer skills.

The traditional values that the rural people carry with them are a bigger advantage to the outsourcing company. There are fewer unproductive things like office romances and homesickness among the down-to-earth employees. Setting up an office in the rural areas not only creates white collar jobs for the rural youth but also bring in the traditional Indian values to the international businesses when the Indian culture is fast moving in sync with the western system.

Companies are showing a lot more interest in building infrastructures for supporting the huge industry of outsourcing to India as there can be seen a considerable rise of rural offices and business processing outsourcing centers in the Indian hinterland. By 2017 each Indian district will see an extended office of the multinational service providing outsourcing companies.

This clearly marks that the Indian companies are tapping the rural offering and opportunities to get cost effective solutions to their business processing.