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Credit: Twitter of Mr Ravi Shankar Prasad

Credit: Twitter of Mr Ravi Shankar Prasad

Indian IT Minister inaugurates two BPO to support Digital India Initiative

On 4 June, the Minister of Electronics and Information Technology, Mr Ravi Shankar Prasad inaugurated two BPOs (Business Process Outsourcing) in Ranchi, Jharkhand and announced that seven more call centres will by established by September (five in the state capital and one each in Dhanbad and Deoghar), under the IN ₹483-crores (around US $72,063,600) India BPO Promotion Scheme (IBPS).

BPO is the contracting of a business process to a third party service provider. BPOs in India include outsourcing in several fields and are the fastest growing segment of the ITES (Information Technology Enabled Services) industry in terms of both production and export.

A BPO service provider will usually administer and manage a specific business process for another company. With the use of either existing technology or new technology, BPOs try to improve a particular business task. Indian BPOs provide a number of IT-related services such as customer support, technical support, creative design, finance and accounting services, insurance and data processing, internet research etc. 

As most companies in the US and UK outsource IT-related business processes to Indian service providers, India is currently the number one destination for business process outsourcing.

The IBPS was initiated under Indian Prime Minister Mr Narendra Modi’s Digital India initiative. The aim of the project, according to the Minister of IT, is to generate employment for the local youth in smaller, more remote villages and to attract investments in these areas for digital development, as well as their overall growth.

The two BPOs that were set up on 4 June, Rtika Printech Private Limited at Kadru and Sri Publication & Stationers Private Limited at Ashok Nagar, will initially hire 50 people each and gradually increase that number to 150.

Mr Ravi Prasad tweeted, “Inaugurated two BPO centres in Ranchi. These BPOs have been set up by local entrepreneurs availing the incentives under India BPO Promotion Scheme of Government of India. It was great to see the enthusiasm of boys and girls from different parts of Jharkhand who got jobs in these BPOs.”

Under the scheme, 48,300 BPOs are expected to be established in the country, this will create jobs for approximately 450,000 people. According to Mr Ravi Prasad, women and differently-abled people will be given priority during recruitments. He also stated the IBPS has already set up 91 BPOs in 88 cities and towns.

The Digital India scheme has provided around 1,210,000,000 people with a unique biometric identifier (Aadhaar) and approximately 450,000,000 people have smart phones. While addressing the management of the Ashok Nagar BPO (Sri Publication & Stationers Private Limited) after its inauguration, Mr Ravi Prasad said, “Your smart phone is your portable computer and Aadhaar number an authentic identity proof. Maximise the use of IT for positive growth."

The IBPS has the potential to create around 150,000 jobs for people in rural India.

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