The BPO industry has witnessed a tremendous growth in India during the past decade due to its growing cost competitiveness, availability of a huge English speaking population and an appropriate infrastructure. India has been the hub of this development with business corporations across the globe targeting India as the preferred location for an economical business process outsourcing.

Rural BPO’s have been on a rise as Tier- 1 Cities serving high-end knowledge intensive jobs. Achieving substantial cost benefits is the primary reason that drives business corporations to establish rural BPO centres in Tier -2 and Tier-3 cities, towns and villages indicating a changing scenario for the growing BPO trends.

Rural BPO’s in India have seen a sharp rise as the cost of living, infrastructure and medical care has considerably risen over the past few years. BPO’s in rural areas prove to be extremely cheaper in terms of infrastructure and other overhead costs. Outsourcing tasks to rural areas is seen as a cost-effective alternative to running outsourcing operations in metro cities.

Unemployment is the primary reason for brain drain in developing countries. Rural BPO development is the answer to brain drain as it provides ample work opportunities to the skilled workforce who is willing to stay back in their hometown. BPO in rural area leads to reverse brain drain that can address the problems of unskilled workforce effectively.

The major impact of rural BPO’s is the assimilation of the rural youth population in the knowledge economy by introducing them to BPO employment opportunities in their hometowns and villages itself that considerably reduces the brain drain effect.

Corporate organizations as a part of their corporate social responsibility initiatives, collaborate with local entrepreneurs in rural areas to set up rural BPO’s that helps in holistic rural development. Setting up a rural BPO help the chunk of local population get employment in a high tech sector that is otherwise not available at rural locations for the skilled rural workforce.

As compared to urban BPOs, rural BPOs do not suffer from attrition problems. Rural BPO’s train educated youth who might otherwise move to developed cities for finding jobs. Most visible impact of rural BPO’s is providing a sustainable income which significantly enhances the household family incomes in rural areas.

Rural BPO centres establishes a symbiotic relationship between corporate organizations and the local population as they enable the development of cost effective business centres that provide employment to thousand of skilled local residents.

Rural BPOs in India imbibe the concept of globalization into the rural roots and reduce the developmental gaps between developed cities and underdeveloped rural areas. Rural BPOs lightens up the entrepreneurial spirit in the local educated class marking a change in the outsourcing trends in India.