Govt Allocates Rs 498 Crore To Reignite BPO Revolution, 1.5L Jobs To Be Created

Things are not good for BPO industry right now; Philippines, Indonesia and China are now becoming hot favorites for Global MNCs when it comes to outsourcing as labor is cheaper than India. Recently NASSCOM lowered their expectation of BPO industry growth from 16% to 14% for the Financial Year 2015-16, which actually indicates that growth has slowed down.

Considering the imminent dangers which Indian BPO industry is currently facing, Modi Government has announced a new ‘BPO Scheme’ to push and reignite the BPO revolution in the country. Telecom & IT Minister Mr. Ravi Shankar Prasad has said that a budget of Rs 498 crore has been allocated for this scheme.

How Will It Work?

Govt. of India has proposed to subsidize creation of 48,000 seats by March, 2017.

A ‘seat’ in the BPO sector means a cubicle or a seat with a workstation and Internet connectivity ; a spot where an employee can login and work. And there are total of 3 shifts in a day (8 hour / shift), wherein a seat can be occupied. Hence, creation of 48,000 new seats means that total of 1.45 lakh people (48,000 * 3) can get jobs in these BPOs.