STUDY OF TWO

RURAL BPOAn Emerging Concept

Presented By:- Sandeep Agarwal

Shipra Sharma

Shradha Singh

UNDER THE GUIDANCE OF

Prof S P Garg

Jaipuria Institute of Management, Jaipur

What is Business Process Outsourcing?

Business Process Outsourcing (BPO) is the delegation of one or more IT-intensive business processes to an external provider.

That administers and manages the selected process based on defined and measurable performance criteria.

In general terms, An organization entering into a contract with another organization to operate and manage one or more of its business processes.

Motivational factors behind establishing the BPOs – Factor Cost Advantage Economy of Scale Business Risk Mitigation Superior Competency Utilization Improvement

Services offered by BPO

Customer Support Services Technical Support Services Telemarketing Services Employee IT Help-desk Services Data Entry Services / Data Processing Services

Rural BPO

• Rural BPO is a similar establishment as other BPOs but is setup in a rural landscape.

• To provide new job opportunities in the villages • To help bridge the gap between India's urban and its poor rural

people

Why Rural BPO?

• Cost factors The cost involved in setting up of a BPO centre in rural areas is low

compared to that in urban areas due to two factors infrastructure and hiring costs.

The cost of operating is 50 per cent less in the rural centres compared to the urban BPOs. And productivity of the rural work force is higher than their urban counterparts.

The companies have to pay less salary than compared to BPOs situated in major cities.

• Discourages Migration – Through Livelihood generation Encourages people to stay and work within their villages

rather than move to the cities in search for jobs. This provides an opportunity for massive movement of

people stretches the resources available in major city centres and also contributes towards overcrowding and slum development.

Overcrowding further leads to less jobs in cities.

Drishtee.com – A Rural BPO in Bihar

About Drishtee

• Drishtee has set up a rural BPO centre in Saurath, a small village in the Madhubani district in the eastern Indian state of Bihar.

• It utilize the latest ICT components to provide top quality services like call centre support, digitization services etc. to clients in India and abroad.

• Drishtee is also leveraging its vast network of 4,200 kiosks across the country to provide these services from geographically distributed centres.

MODEL

•Drishtee focuses on building local capacity to create opportunities for growth

•Generates wealth for the community•Drishtee works on a rural franchising model•Has established sustainability with development

outcomes.•Creates significant social and economic impact.•It is Scalable and Replicable across the globe for

disaggregated communities.

Approach• Follows a bottom up approach• All offerings are those which are needed by the

rural market and which create an impact.

Such as Health and Education

• Drishtee's model is entrepreneur driven On several instances a woman Key reason along with its approach for

products and services that it is scalable and sustainable.

Infrastructure• Drishtee's model works where the locations are

remote Since easy accessibility is an issue, Drishtee

can add higher value. Typically these locations are such where

infrastructure would always be a constraint.

• Drishtee aims to perfect the last mile delivery systems using technology and scientific methods

Impact on Community Bottom up approach and service delivery

– eGovernance – Banking &Finance – Livelihood– Market – Education– Information– Agriculture

The BPO Centre at Saurath has impacted the lives of several individuals, particularly women by providing them with jobs within their communities.

ConceptThree key concepts to our approach:

1. Impact on Community (of products and services)

2. Bottom up approach and ability to deliver aggregation of demand and Supply Chain

3. Network and network strength

About Rural BPO

“The idea is to help educated rural youth, upgrade the quality of their lives without destructing the cultural fabric. The aim to hold back the youth from migrating to cities by providing employment here in villages.”

Sai Seva

Sai Seva (Serve and Inspire Simple Employment for Village Advancement) BPO was started by the management students of Sri Sathya Sai University in May 2006.

SAI SEVA was set up for two main reasons:• To utilize the potential of India’s youth.• To deliver speedy, cost-efficient, and quality

results to customers who required low-skill, but intense back-office work.

The middle and lower level employees in SAI SEVA are people from the surrounding villages.

Quality Policy

SAI SEVA is committed to spearhead the concept of Rural BPO by:

• Training and enhancing the skills of the rural educated youth

• Providing cost efficient and qualitative process support to our clients.

• Striving to continuously improve service offerings based on the philosophy of Harmony of Thought, Word and Deed.

The S3 model

Services Offered (For Indian Clients)

For HDFC Bank, India – HDFC Bank is India’s second largest bank and they have chosen SAI SEVA to provide critical and timely data capture services.

• Bank account opening data capture – Customer-filled bank account opening forms are scanned and transmitted and the form images are converted into data.

• in a two-stage (dual capture) process that ensures 99% of accuracy. Close to 130,000 account forms are processed per month.

For Basix, India – Basix is a pioneer in rural livelihood promotion in India and they provide a wide variety of services and financial products for the Indian rural sector.

• Insurance claims processing – Basix sells insurance products to its rural customers via tie ups with major insurance companies. Claims are received at our center where the relevant data is captured from the forms and compliance policy checks are carried out.

• Fresh proposal forms entry – Insurance proposal forms from prospective customers are received and the form data is captured.

• Telephone based support – Claim status updates for customers calling on a toll-free number at our center.

For Foreign Clients

For REASource Info Systems, USA• Mortgage document indexing – Scanned images

of various types of mortgage documents registered in Washington state counties are retrieved via FTP. Key fields are identified in each document and the data is captured to facilitate image indexing and retrievals.

Infrastructure

• 75 fully done-up modular workstations to seat 150 employees in two shifts.

• Air-conditioned premises. • Dedicated server room, gigabit LAN cabling. • 6 Mbps dedicated connectivity client-provided

connectivity and 2 Mbps internet connection.• Continuous power supply with UPS supported by

42 KVA generators. • Closed circuit cameras and Access controlled

entry points 24 hours physical security presence.• Fully compliant with banking information security

guidelines • Dedicated training rooms.

The Sai Seva Difference

• The Sai Seva directors do not take any payment from the venture and all profits are ploughed back for developmental activities.

• The BPO provides free computer training for potential employees and sponsors some for higher education.

• Sai Seva has no night shifts and has not faced attrition so far.

• At SAI SEVA, believes that its a part of clients. Their complete commitment to client's business needs is quite simply reflected in their work culture.

Contd..

• Enhancing speaking good English. • Sai Seva has already started training local village

youths on basic computer skills such as Microsoft Office.

• Sai Seva is looking at more rural centers in locations such as Bagepally and Kuppam in AP, and will have centres in over 25 villages across the country in the coming few years.

• Targeted marketing by Word of Mouth.

Challenges & Mitigation

• Lack of expertise in English and others.• Lack of availability of reliable and fast network

connectivity.• Low confidence level due to lack of proper training and

performance measures.

Conclusion

The outsourcing business in India is based on sound fundamentals. But constant innovation and spotting new opportunities can help rejuvenate this competitive advantage and rural BPO is definitely one of those business innovations. The pace with which the concept of rural BPO proliferates will decide the future of the Indian outsourcing business vis-à-vis the global competition.

Welcome to your suggestions

spgarg@jimj.ac.in

093992 92080