30064885 Rural Oriented BPOs

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    STUDY OF TWO

    RURAL BPO

    An Emerging Concept

    Presented By:- Sandeep Agarwal

    Shipra Sharma

    Shradha Singh

    UNDER THE GUIDANCE OF

    Prof S P Garg

    Jaipuria Institute of Management, Jaipur

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    What is Business ProcessOutsourcing?

    Business Process Outsourcing (BPO) is the delegation of one ormore IT-intensive business processes to an external provider.

    That administers and manages the selected process based on

    defined and measurable performance criteria.

    In general terms, An organization entering into a contract withanother organization to operate and manage one or more of its

    business processes.

    Motivational factors behind establishing the BPOs Factor Cost Advantage

    Economy of Scale

    Business Risk Mitigation

    Superior Competency

    Utilization Improvement

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    Services offered by BPO

    Customer Support Services

    Technical Support Services

    Telemarketing Services

    Employee IT Help-desk Services

    Data Entry Services / Data Processing Services

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    Rural BPO

    Rural BPO is a similar establishment as other BPOs but is setup in

    a rural landscape.

    To provide new job opportunities in the villages

    To help bridge the gap between India's urban and its poor ruralpeople

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    Why Rural BPO?

    Cost factors The cost involved in setting up of a BPO centre in rural areas is low

    compared to that in urban areas due to two factors infrastructure and

    hiring costs.

    The cost of operating is 50 per cent less in the rural centres comparedto the urban BPOs. And productivity of the rural work force is higher

    than their urban counterparts.

    The companies have to pay less salary than compared to BPOs

    situated in major cities.

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    Discourages Migration Through Livelihoodgeneration Encourages people to stay and work within their villages

    rather than move to the cities in search for jobs.

    This provides an opportunity for massive movement of

    people stretches the resources available in major citycentres and also contributes towards overcrowding andslum development.

    Overcrowding further leads to less jobs in cities.

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    Drishtee.com A Rural BPO in

    Bihar

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    About Drishtee

    Drishtee has set up a rural BPO centre in Saurath,a small village in the Madhubani district in theeastern Indian state of Bihar.

    It utilize the latest ICT components to provide topquality services like call centre support, digitizationservices etc. to clients in India and abroad.

    Drishtee is also leveraging its vast network of

    4,200 kiosks across the country to provide theseservices from geographically distributed centres.

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    MODEL

    Drishtee focuses on building local capacity tocreate opportunities for growth

    Generates wealth for the community

    Drishtee works on a rural franchising modelHas established sustainability with development

    outcomes.

    Creates significant social and economic impact.

    It is Scalable and Replicable across the globe fordisaggregated communities.

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    Approach

    Follows a bottom up approach All offerings are those which are needed by the

    rural market and which create an impact.

    Such as Health and Education

    Drishtee's model is entrepreneur driven

    On several instances a woman Key reason along with its approach for

    products and services that it is scalable andsustainable.

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    Infrastructure

    Drishtee's model works where the locations areremote

    Since easy accessibility is an issue, Drishteecan add higher value.

    Typically these locations are such whereinfrastructure would always be a constraint.

    Drishtee aims to perfect the last mile delivery

    systems using technology and scientific methods

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    Impact on Community

    Bottom up approach and service delivery eGovernance

    Banking &Finance

    Livelihood

    Market

    Education

    Information

    AgricultureThe BPO Centre at Saurath has impacted

    the lives of several individuals, particularlywomen by providing them with jobs within

    their communities.

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    Concept

    Three key concepts to our approach:

    1. Impact on Community (of products andservices)

    2. Bottom up approach and ability to deliveraggregation of demand and Supply Chain

    3. Network and network strength

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    About Rural BPO

    The idea is to help educated rural youth, upgrade the

    quality of their lives without destructing the culturalfabric. The aim to hold back the youth from migrating to

    cities by providing employment here in villages.

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    Sai Seva

    Sai Seva (Serve and Inspire Simple Employmentfor Village Advancement) BPO was started by themanagement students of Sri Sathya SaiUniversity in May 2006.

    SAI SEVA was set up for two main reasons: To utilize the potential of Indias youth.

    To deliver speedy, cost-efficient, and qualityresults to customers who required low-skill, but

    intense back-office work.The middle and lower level employees in SAI

    SEVA are people from the surrounding villages.

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    Quality Policy

    SAI SEVA is committed to spearhead the conceptof Rural BPO by:

    Training and enhancing the skills of the rural

    educated youth Providing cost efficient and qualitative process

    support to our clients.

    Striving to continuously improve service offerings

    based on the philosophy of Harmony of Thought,Word and Deed.

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    The S3 model

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    Services Offered(For Indian Clients)

    For HDFC Bank, India HDFC Bank is Indiassecond largest bank and they have chosen SAISEVA to provide critical and timely data captureservices.

    Bank account opening data capture Customer-filled bank account opening forms are scannedand transmitted and the form images areconverted into data.

    in a two-stage (dual capture) process thatensures 99% of accuracy. Close to 130,000account forms are processed per month.

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    For Basix, India Basix is a pioneer in rurallivelihood promotion in India and they provide awide variety of services and financial products forthe Indian rural sector.

    Insurance claims processing Basix sells insurance

    products to its rural customers via tie ups withmajor insurance companies. Claims are received atour center where the relevant data is captured fromthe forms and compliance policy checks are carriedout.

    Fresh proposal forms entry Insurance proposalforms from prospective customers are received andthe form data is captured.

    Telephone based support Claim status updates for

    customers calling on a toll-free number at ourcenter.

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    For Foreign Clients

    For REASource Info Systems, USA

    Mortgage document indexing Scanned imagesof various types of mortgage documentsregistered in Washington state counties areretrieved via FTP. Key fields are identified in eachdocument and the data is captured to facilitateimage indexing and retrievals.

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    Infrastructure

    75 fully done-up modular workstations to seat150 employees in two shifts.

    Air-conditioned premises. Dedicated server room, gigabit LAN cabling. 6 Mbps dedicated connectivity client-provided

    connectivity and 2 Mbps internet connection. Continuous power supply with UPS supported by

    42 KVA generators. Closed circuit cameras and Access controlled

    entry points 24 hours physical security presence. Fully compliant with banking information security

    guidelines Dedicated training rooms.

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    The Sai Seva Difference

    The Sai Seva directors do not take any paymentfrom the venture and all profits are ploughedback for developmental activities.

    The BPO provides free computer training forpotential employees and sponsors some forhigher education.

    Sai Seva has no night shifts and has not facedattrition so far.

    At SAI SEVA, believes that its a part of clients.Their complete commitment to client's businessneeds is quite simply reflected in their workculture.

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    Contd..

    Enhancing speaking good English.

    Sai Seva has already started training local villageyouths on basic computer skills such as MicrosoftOffice.

    Sai Seva is looking at more rural centers inlocations such as Bagepally and Kuppam in AP,and will have centres in over 25 villages acrossthe country in the coming few years.

    Targeted marketing by Word of Mouth.

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    Challenges & Mitigation

    Lack of expertise in English and others.

    Lack of availability of reliable and fast network

    connectivity.

    Low confidence level due to lack of proper training andperformance measures.

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    Conclusion

    The outsourcing business in India is based onsound fundamentals. But constant innovation andspotting new opportunities can help rejuvenatethis competitive advantage and rural BPO is

    definitely one of those business innovations. Thepace with which the concept of rural BPOproliferates will decide the future of the Indianoutsourcing business vis--vis the global

    competition.

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    Welcome to your suggestions

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