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Shroff Foundation Trust - Vanbandhu Kalyan Yojana - Government ...

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short time, the capacity building of the manpower is a development process<br />

and would take some time. Considering that language skills are also to be<br />

developed, a reasonable estimate of 9 months to 12 months should be taken for<br />

development of manpower to be ready to work as process agents in the BPO<br />

unit.<br />

There are some good reasons for customers to have rural BPOs attractive from<br />

a business standpoint. The main driver is cost as the infrastructure cost<br />

(physical space<br />

rental, lease or purchase) and people cost (the highest cost in<br />

a BPO) are much lower in rural areas compared to urban situation. Also, with<br />

the growth of urban areas, the cost of running BPO in a city is increasing and<br />

the cost leverage that was there five years back has considerably reduced.<br />

Moreover, the pressures on city infrastructures are creating major roadblocks in<br />

expanding the set-up in cities. For example, severe traffic j ams have become a<br />

norm in Bangalore, the biggest BPO hub in India.<br />

As we look forward, it is envisaged that rural areas are going to become focus<br />

of low-end BPO services and the urban BPO services will tend to move up the<br />

value chain and over a period of time urban areas will become the focus of<br />

high-end BPO services, generally termed as KPO (Knowledge Process<br />

Outsourcing).<br />

Considering the above, it is proposed to set-up a BPO unit in Chhota Udepur on<br />

the basis of a properly designed Proj ect Implementation Plan. This would also<br />

provide an early mover advantage as well as form a basis for replication of the<br />

model into the same and other rural locations.<br />

As a public-private partnership model, Transpek Industry Limited, Vadodara<br />

was approached and they have agreed in principle to take over this unit<br />

directly or through any of their associate/group company after 12 months and<br />

run it as a business unit wherein the tribal youth will continue to be employed<br />

and earn income.<br />

<strong>Shroff</strong>s <strong>Foundation</strong> <strong>Trust</strong> 5

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