Rural BPO policy to improve skills, economic conditions soon: Prasad

The government will soon come out with a business process outsourcing (BPO) policy for small towns and cities to create jobs for the youth and improve the economic conditions of those areas.

“We are in the process of finalising a policy for establishing BPOs in smaller towns and cities. We have a huge talent of English-speaking youth in those areas. All we need to do is make conditions favourable for companies to establish centres in those areas,” Ravi Shankar Prasad, Minister for Communications and Information Technology, told BusinessLine .

He said the policy would act as a catalyst and help in improving the economic conditions of not only those rural areas but also the particular States.

Since the government has so many new schemes such as public distribution system, banking and healthcare services, etc, such call centres can help manage those services, he added.

Prasad in November had said that he has directed his officials to formulate guidelines regarding establishing BPO centres in small towns and cities across India like Gorakhpur, Ghazipur, Sagar and similar places in Bihar, Odisha and West Bengal.

He said that tax exemptions would be provided under the new guidelines for BPOs and the process for opening them would be liberalised. This would be done by adhering to BJP’s Lok Sabha poll manifesto to focus on development of Eastern and North-Eastern regions, he said.

According to industry veterans, such ideas can work out well if there is a proper policy. The earlier government had also tried, but could not succeed, they said. “There were missing links earlier. But, if such ideas work, then there are lot of potentials and the industry along with the government can do a lot. For example, works like pension, insurance management and places like the North-East can be explored,” Pramod Bhasin, Non-Executive Vice-Chairman and former President and CEO of Genpact, told BusinessLine .

He said the government can provide incentives for such companies who set up centres in those areas and issues like land acquisition or taxes should be taken care of. In return, the government can ask these companies for how many jobs they have created or how many trained from time to time.

“There is an enormous list of work that can be created through such centres because BPOs are not only about giving jobs, but also to train people,” Bhasin added.

There are companies such as Delhi-based B2R, Chennai-based Desicrew and Vindhya, and Bangalore-based Rural Shores that are dedicated in rural areas, who can take a lead in working with the government, said another industry veteran.