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AP in driver's seat in implementation of India BPO Scheme

Andhra Pradesh has topped among various States in the implementation of India BPO Promotion Scheme (IBP) being implemented by the Software Technology Parks of India (STPI).

AP in drivers seat in implementation of India BPO Scheme
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AP in driver's seat in implementation of India BPO Scheme

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New Delhi/Visakhapatnam Andhra Pradesh has topped among various States in the implementation of India BPO Promotion Scheme (IBP) being implemented by the Software Technology Parks of India (STPI). an autonomous society under the Ministry of Electronics & Information Technology (MeitY).

The scheme pan India has provided employment to over 40,000 residents in tier two and three cities. Visakhapatnam, the largest commercial hub of AP, has emerged as No. 1 city in the implementation of the scheme. IBPO has played a pivotal role in facilitating the expansion of BPO/ITeS companies in several tier 2 and 3 towns across the country.

To provide job opportunities in smaller cities and remote areas, the government launched two schemes, India BPO Promotion Scheme and North East BPO Promotion Scheme (NEBPS), under the Digital India programme. The objective of these schemes is two-fold: to provide employment for the youth in smaller/mufassil towns and promote balanced regional growth through investment in the BPO/ITES sector.

In recent years, IBPS has generated direct employment for over 40,000 people out of which about 38% are women. The units have reported over 3,000 additional employment generation last year. Interestingly, over 30+ of these locations reportedly had first-of-its-kind formal BPO/ITeS operation due to this initiative. Ihe BPO Promotion Scheme has received an enthusiastic response from the industry to set up BPO/ITES operations across the country.

At present, 252 BPO/ITES units are operational on 47,043 seats under the scheme. These units are distributed across the country in more than 100 cities/towns of 27 States/UTs. IT, telecom, e-commerce, fintech and healthcare are dominant sectors driving the demand for BPOs. Traditionally, the Indian BPO/ITES sector grew and was centered around a few metropolitan cities. This forced youths from other locations to migrate to metro cities for jobs.

The scheme has helped thousands of local youths to get employment at their native places and also helped in attracting investments in the regions. Moreover, it has led to the establishment of BPOs in cities hitherto untouched by the BPO/ITES wave, such as Baitalpur, Mayiladuthurai, Bhimavaram, Majuli and many more", said Dr Omkar Rai, Director General, STPI.

He stated in a release that under the scheme, the highest number of employment generation has been reported in Andhra Pradesh (12,234), followed by Tamil Nadu (9401), Punjab (4463), Odisha (2493), Maharashtra (2353), Jharkhand (2256) and Bihar (1551).

Among the cities, the highest number of employment generation has been reported in Visakhapatnam 7738; followed by Coimbatore 4908; Mohali 4453; Ranchi 2162; Bhubaneswar 1901; and Patna 1324.

"We are very happy with the performance of Andhra Pradesh in general and Visakhapatnam in particular. Visakhapatnam is emerging as a prominent BPO hub in the country," STPI Joint Director M.P. Dubey told Bizz Buzz when his comments were sought on implementation of IBPS.

IBPS seeks to incentivize the establishment of 48,300 seats with respect to BPO/ITeS operations in smaller locations. Similarly, the NEBPS scheme aims to incentivize the establishment of 5000 seats in respect of BPO/ITeS operations in the North Eastern Region. The government provides financial support up to Rs 1 lakh per seat as Viability Gap Funding (VGF) for setting BPO/ITES operation in non-metro locations through this scheme. The value propositions of smaller cities and support from the government have motivated several organisations to establish their base in tier 2 and 3 locations.

Dr Omkar Rai said "India continues to be a leader in the global sourcing industry. According to an estimate, India currently accounts for approximately 38% of the global market share of BPOs. The Indian BPO industry is currently pegged at $38bn and is expected to be worth $54bn by 2025.To maintain the leadership, it is imperative for India to unlock the vast potentials of smaller cities, and the BPO Promotion scheme has made some great strides in this direction. It is noteworthy that more than 60 BPO/ITES units under the scheme are successfully delivering services to global clients of at least 16 countries."

Santosh Patnaik
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