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Submitted By:

Submitted to:

Alka Sinha

Prof. Shubharata Basu


Course: Growth Strategies for Developed and Emerging Economies



Assignment: NICT at a Crossroads


Do you think NICT should take up PBI Offer?

Advantages and disadvantages of PBI Offer:


Nice fit in current NICT Business Model

Sustainable social intervention, regular employment and security for CSC VLE

Fixed source of income. Assured Future Cash Flows. Excellent Relationship formation with one of the largest banks in India

Will achieve economies of scale

Will emerge pan India. National Brand

Monopoly over technology in rural areas.

May breed complacency and corruption among the ranks

PBI has more bargaining power hence may misuse it

PBI workload may constrain NICT’s capability to offer diverse service portfolio

PBI may enforce its own processes and software on NICT

No guarantee of success of PBI


Status quo situation with stabilized system

Strengthen relationship & ties with existing collaborators

May aid in bringing new collaborators

May have a chance with PBI in the future

PBI might create substitute mechanisms to enter the market

Or, bypass NICT and directly engage VLEs to setup standardized compatible networks encouraging them to sever ties with NICT

SBI, BoI might consider opportunistic collaborations with other vendors setup by PBI


Content and Process of Building Core Competencies


Common Service Centres (CSCs)

VLE- Village Level Entrepreneurs

Competencies and Capabilities based Scale Economy


Core Analytical Framework

Scope Economy based Diversification Strategies

Accepting the offer means scale economy

The scope economy for NICT if they accept PBI proposal would be it will get chance to serve schemes like NREGA and reach 22 million population.

Business facilitators for Banks, insurance companies

More reach to the rural population which echoes with their core value of Techno-Socio-Economic organisation

Current association with BOI, SBI, LIC, TATA AIG


Serendipity Vs Planning Based Success


Careful planned execution will help VLEs and NICT to increase their profit share.

NICT will have monopoly.


PBI will be able to reach maximum consumer through NICT vast existing network. This in turn will benefit the rural population.

Based on these factors, NICT should accept the PBI offer.


Ramifications that SBI and BOI may face if NICT accepts the PBI offer:

What are ramifications with respect to SBI & BOI if it takes up PBI Offer?

With PBI already vast network in rural coupled with NICT technology will help PBI to reach rural crowd quicker and faster. This can affect SBI rural customer segment.

PBI is launched under NREGA scheme. This will ensure wider customers base and more customer loyalty. It may happen that NICT may have to increase its CSC VLE to ensure proper resource allocation to SBI or BOI.

SBI or BOI may look for other channels apart from NICT to reach to target customers.