BPOs heading to smaller towns with 9,000 new call centre seats: IT minister

The ministry of information technology has given in-principal approval for around 9,000 seats in business process outsourcing (BPO) units across several small cities of the country, including Varanasi, Siliguri and Patna, minister of information technology and law Ravi Shankar Prasad said while inaugurating a BPO workshop in the capital.

"I remember during my visit to Bengaluru, people from North-East, Bihar and other places asked me to do something so that they can work in their hometowns. I am happy that with BPOs in small towns, people will be able to work without any need to leave their native place," Prasad said.

He said India holds 38 per cent share in the global BPO industry and stage is set for a massive growth in the sector.

More than 50 companies will be setting up BPO operations at 60 locations in 18 states and 2 union territories, including Varanasi, Unnao, Patna, Amravati, Dhule, Siliguri, Cuttak, Dalsinghsarai and Muzaffarpur, he said.

"I see a lot of scope for BPOs in Indian language," Prasad added.

Thye ministry of electronics and IT (MEITY) joint secretary Rajiv Kumar said Software Technology Parks of India (STPI) has given in-principal approval for 9,020 seats and is expected to finalise 3,000 more in third round of bidding that started today.

TCS and Amazon were among big companies that have participated in the bids for BPOs, according to STPI officials.

Under its BPO promotion scheme, the centre will provide financial support for a total of 48,300 seats to be set up across the country with total outlay of Rs493 crore. The scheme has provision to provide 50 per cent of actual expenditure with cap of Rs1 lakh per seat.

"In tier 2 and 3 cities, possibilities are more compared to tier 1 cities. If we move to tier 2 and 3 cities, it will be cost effective and also generate employment. We have to address problems related to innovation and transformation of sectors," minister of state for IT and law P P Chaudhary said.

MEITY additional secretary Ajay Kumar said there are more than 40 mobile phone companies that have started manufacturing in India and ample opportunities are being created under the Digital India programme, which will fuel growth of BPOs.

"Industry needs to find a way with which it can leverage outsourcing demand in the country. Largest health management system is going to be set up this year. GST network is being set up which will require huge work at the back-end and create opportunities for IT companies," Kumar said.