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The Rural BPO Sector in India: Encouraging Inclusive Growth through Entrepreneurship

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Socially Responsible Outsourcing

Part of the book series: Technology, Work and Globalization ((TWG))

Abstract

Rapid growth rates in India and other Asian countries have led to a significant reduction in the incidence of poverty but has also led to rising inequalities across sub-national locations, particularly across rural and urban sectors, and between skilled and unskilled workers (Ali 2007). A factor that has contributed to this trend is IT outsourcing activity in which a small segment of the population has benefited from an extraordinary boom while large segments of the population are stuck with low wages, little or no social services, and remote opportunity for improved mobility. In recent years new IT sourcing models have emerged as rising costs in urban centers have forced many large business process outsourcing (BPO) companies to outsource low value-added tasks to employees in rural areas with the role of government limited to that of a catalyst and facilitator. This new rural BPO activity is mainly driven by traditional players in the outsourcing market using revenue-based business models to reduce labor costs.

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© 2016 Shirin Madon and C. Ranjini

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Madon, S., Ranjini, C. (2016). The Rural BPO Sector in India: Encouraging Inclusive Growth through Entrepreneurship. In: Nicholson, B., Babin, R., Lacity, M.C. (eds) Socially Responsible Outsourcing. Technology, Work and Globalization. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-137-55729-2_4

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