Business Process Outsourcing (BPO)

Services In Rural India

Inspired

Table of Contents
1.Executive Summary
2.Mission
3.Business Plan Background
4.Opportunity
5.Business Model
6.Benefit Plan
7.Marketing Plan
8.Human Resources Plan
9.Governance
10.Financial Plan
11.Risk Management

Executive Summary
With a mission of reaching underserved rural villages, provides an innovative distribution
network for kiosk-based products and services in rural India through the use of modern
Information Communication Technology (ICT).
The Business Process Outsourcing (BPO) industry in India experienced revenue growth of
31.6% in 2008. Rural BPO industry is particularly attractive to investors because of low
labourand operation costs.
With Drishtees experience in rural BPO operations and existing network of 4,200 kiosks, there
is an opportunity for Drishtee to set up a Village Training and Operations Centre in Hubli.The
business can be taken to scale to other villages in India.
The large pool of potential customers in India, such as banks, educational institutions and
government bodies, represents significant opportunities for Drishteeto expand its business.
Eventually, business can also be drawn from existing BPO companies in Delhi and Mumbai.
After receiving comprehensive training, villagers will be groomed to be competent BPO
Operators as well as potential rural BPO entrepreneurs. Villagers will enjoy benefits in terms of
more job opportunities, enhanced education level, higher income and improved living standards.
The sustainable benefits for both investors and villagers will be guaranteed by a well-designed
governance structure and risk management measures.

Mission
To develop a commercially viable BPO rural business model that can be taken to scale in other
rural villages in India, leveraging Drishtees existing supply-chain network and model village
concept. This business will both provide substantial returns to investors and improve the quality
of life of villagers by providing increasing access to education and employment opportunities.
Emergence of rural BPO services in India
India has enjoyed promising economic as well as Information Technology (IT) growth in recent
years. Amongst various types of ICT services, the Business Process Outsourcing (BPO) industry
experienced exceptional growth at around 40% per year. With suchrapid growth in the industry,
BPO companies in big cities are facing challenges of labour shortage and rising real-estate costs.
To sustain their strengths in the competitive BPO industry, certain entrepreneurs look for
extending BPO services into rural areas by cultivating the skills of educated young community
members. Despite the visionary concept, critical barriers concerning rural infrastructure and
human resource capacity hinder the potentials for growth.
Various organizations have endeavored to address these issues. DrishteeDevelopment and
Communications Ltd (Drishtee), a unique rural distribution network set up in 2000, is leveraging
its first-mover advantage in rural access for revamping rural ICT development. With its
achievements in the past, Drishtee has gained accolades from respected institutions such as the
World Bank, Schwab Foundation, WEF and Clinton Global Initiative.
The aim of the business plan (The Plan) is to develop a BPO Training and Operation Centre,
a subsidiary under Drishtee ,by both utilizing Drishtees experience in rural BPO and an
innovative new business model developed by GIFT. The ultimate aim of the Plan is to diffuse
this commercially viable model into other parts of the country and create a new era for rural BPO
development, as well as bring technology and economic development to the vast rural area.

Emergence of rural BPO services in India

Rapid GrowthIndia is one of the fastest growing economies in the world with an expected
annual growth rate from 5.2% to 6.5% in the future 3 years
Dynamic ICT industryTechnology service sector accounts for approximately 40% of Indias
GDP and employ 25% of the national workforce
Robust BPO services
Contributes substantially to India's revenue and drives 30% of growth in its IT exports
A variety of BPO services ranging from data-entry, transcription services, call centre, to noncore and core transaction processing
Experienced a year-on-year growth of 37%in 2006
Employs around 400,000 people and is expected to face a shortfall of 262,000 professionals
(opportunities) by the year 2012.
Decline of Agriculture creates new opportunities Monotonous and Low Income in rural area:
70% of rural population engage in agriculture
The national average income is US$592 while the per capita income of Indian villages is
US$252.
Agriculture contributes only 21% of the countrys GDP and is in decline.
Serious rural-urban migration:
Unemployment in rural areas leads to widespread migration of unsatisfied youths to cities
seeking better career opportunities

Conclusion: The rising cost of BPO in Indias 1st-tier and 2nd-tier cities, as well as the
aspirations of the rural population for an alternative lifestyle havegeneratedabundant potential
labourfor rural BPO development.
Under-developed infrastructure
Facilities for electricity, telecom, road and transport are not fully set up in rural areas
Limitations of labourcapacity
40% rural population are illiterate
50% drop-out rate for children before the 5th grade
Drishtee currently operates a group companies including Drishtee Foundation and Quiver Info
Services. Enjoying an extensive rural distribution network, the venture engages in promotion of
ICT and offers kiosk-based products and services, including FMCG sand other durable goods
and services like education, health and financial services. Support by various international
institutions:Worldwide recognition from World Bank, Schwab Foundation, WEF and Clinton
Global Initiatives Backed by institutional investors including IFC, Acumen fund, Grameen
foundationStrategy of Route Economics:Services a multi-product Supply Chain network by
leveraging pre-defined transportation routes in order to gain economic viabilityManages
existing network of over 4100 kiosks and 700 rural retail points across 10 states in IndiaRoute

BPO Industry in India