India’s BPO industry is already worth $12bn but rural BPOs are part of a fresh push by Indian entrepreneurs to keep the industry competitive according to BBC article titled “Business ventures thrive in rural India “.

Rural BPOs are aimed at providing cost-effective solutions to foreign companies that want to outsource their work.  Where Indian and foreign companies might have looked to other countries for competitive deals, rural BPOs ensure business stays in India according to the article.  In 2008 Murali Vullaganti founded RuralShores with business partners including Chennai-based entrepreneur R Sujhata, who was the architect of the rural BPO model in Puttaparthi in Tamil Nadu state. It got a shot in the arm after one of India’s leading banks, HDFC, bought a substantial stake in the company. Mr Vullaganti says his company could offer savings of up to one-third on city BPO centres.

The success of the rual BPO model is attracting city BPO workers with roots in villages. But with all its cost effectiveness and cutting edge advantage, rural BPO centres do not offer voice services.  They focus on processing the documents of insurance companies and banks and handle the email queries generated on these companies’ websites.  Nevertheless, the rural BPO is an ambitious project. Mr Vullaganti said his company planned to set up 500 centres all over the country in the next five to six years.