Indian tech majors Infosys Technologies and Wipro are set to enter the booming domestic back-office service market by setting up operations in rural India according to the Business Week article titled: Infosys, Wipro Focus More on Outsourcing in Rural India

With global demand falling due to the downturn in the US and other western economies, the domestic market, estimated at $1.6 billion and growing at an annual compounded rate of 38%, has gained a momentum and outsourcing companies want to capitalize on that.  Tying up with rural service providers will keep margins from domestic business similar to those from international business.

At present there are about a dozen rural BPO players including RuralShores, HOV Services, Sai BPO and DesiCrew in India, accounting for just a fraction of the domestic industry.  Tie-ups with the likes of Infosys and Wipro will help these small startups attract big clients in mobile phone and banking industries that are making major inroads into rural markets.  RuralShores – which has a 160-people center in Bagepalli village, three hours from Bangalore, and another one at Ratnagiri in Vellore district of Tamil Nadu – is planning to open 500 village centers across the country over the next seven years, each with 20-30 seats.