Thursday, June 5, 2008

In India, Rural Workers Run Call Centers

Venkat Pullaiah, a local university graduate, migrated in search of a job to Hyderabad, the capital city of Andhra Pradesh state in south India, which is about 500 kilometers from his village. Working at an administrative job at an investment firm for a paltry 3,000 Indian rupees (about US$70) per month, Pullaiah said he found it difficult to make ends meet in the increasingly expensive city.

Pullaiah now works at a BPO (business process outsourcing) and call-center operation set up by the Byrraju Foundation at Ethakota in rural Andhra Pradesh, which is close to his village. His current salary of 2,500 rupees for a fresh recruit is less than what he was earning in the city. But costs are lower in rural India, so he has now moved to the ranks of the rural middle class, he said with considerable pride.

India's economic boom has largely excluded the rural educated people who have to move to the city for jobs. "People in villages who are graduates are reluctant to work on the farm, so they have to either move to the city or are usually unemployed in the villages," said JK Manivannan, head of the rural BPO program at the Byrraju Foundation.

Setting up call-center and BPO operations in villages may help to reduce migration from villages to already overcrowded and expensive cities. A large number of the staff at BPOs and call centers in cities come from smaller towns and villages, said Saloni Malhotra, CEO and cofounder of DesiCrew Solutions, a startup in Chennai in Tamil Nadu state, focused on providing BPO services from rural areas. By taking the jobs to rural areas, companies like DesiCrew can access more staff, she added.

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