Rural BPO: Karnataka keeps IT biggies away

BANGALORE, INDIA: The Rural BPO program started by the Government of Karnataka (GoK) would not see any direct participation from the established global BPO players as application criterion says that the company should be led by an independent party and not a branch office of the lager player.

Speaking to CIOL, Ashok Kumar C. Manoli, Principal Secretary to Government, Department of Information Technology, Biotechnology and Science & Technology, said through the initiative the government plans to serve two purposes; first is to generate employment in the rural areas and second to encourage young entrepreneurs.

“We would want to see more Narayana Murthys and Premjis coming out for India's development,” he said.

Earlier companies like Wipro and Infosys had talked opening up rural BPOs. Last year, Infosys BPO Limited, a subsidiary of Infosys, had signed an agreement with the Andhra Pradesh government to set up rural BPO centers in 22 districts of the state.

According to Manoli, Karnataka follows a different pattern, and the partnership under question is most likely a practice of corporate social responsibility. Perhaps, this is why it could happen in Andhra Pradesh rather than Karnataka.

“Big IT companies are not allowed to open up their branches under this program. This is a rural BPO, working under independent and individual owner, the entrepreneur. We do not want the major to grow. Instead we intend to help the small firm to get bigger.” However, he added, “The major IT companies could have certain collaboration with the participating company. But the registered company needs to be led by an entrepreneur.”

Elaborating on the initiative he said that the government would play a role of the catalyst. It would introduce the proposal, provide financial and infrastructural (like the computers, chairs, rooms) support to the company.

“As the objective of the scheme is to set up BPO Centres, the applicants must examine the business opportunities in the BPO Sector before submitting the application. No assistance will be provided by KBITS or the Government in getting business for running the BPO Centre or providing employment.”

He informed that the government is also following a 'touch-me-not' policy, so even the choice of people (graduate/ above, women/men-only) would be at the company's discretion. Talking about the basic regulations, Manoli informed that the BPO should employee people from village, should be at least 100 seater and should cover one hobli (cluster of four to five villages), with less than one lakh population.

Earlier, Manoli reported that financial support would be of Rs.. 5,000 per employee as subsidy to meet the cost of building rentals and Internet connectivity – Restricted to first two years of the operation of each unit. This would be offered even to such BPO units, which set up exceeding 100 seats. The financial support will however be offered in multiples of 100 seater and not in fraction.

Starting with the first such initiative at Srirangapatna in Mandya District, in a span of six to seven months, Karnataka has helped open around 15 centers, with another four on their final stages and would start by end of this month.

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