Friday, January 12, 2007

BPO to the Villages

Came upon this story during my periodic browsing of BusinessWeek Online.

"If work can shift from the U.S. to a city in India, why can't work from cities in India shift to villages in India?" says Ramalinga Raju, chairman of tech services provider Satyam Computer Services Ltd. and founder of the Byrraju Foundation.


This is an interesting use of IT to spread the economic benefits to the people of real India (70% of the population lives in villages). If this all works out, in say 10 years, it will help in increasing the IT literacy among the people leading to increase in government IT spending (since the government will be a major spender on such projects, a new vote-bank maybe(?)) a domino effect of sorts.

Entry-level GramIT employees, all with at least three-year college degrees, earn $800 a year, compared with $2,000 to $5,000 annually for an employee at an urban outsourcing shop. And because there are few other good jobs in these communities, GramIT's centers see just 5% annual turnover—dramatically better than the 60% rate in places such as Bangalore.


One other good side-effect would be that the next or next to next generation would be more and more IT savvy creating a talent pool for the tech industry.

It still has to pick up steam and hope it really does well.

If the internet connectivity is really good, I wouldn't mind shifting to my native village, grow my own stuff, enjoy life.

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