Aiming for a comprehensive development for non metro cities and its dwellers, National Association of Software and Services Companies or NASSCOM has proposed an innovative concept, which if implemented will result in generating around 1 million jobs. NASSCOM has sought key policy changes to encourage expansion of the country's multi-billion dollar Business Process Outsourcing (BPO) industry to non-metro locations, a long-standing demand of domestic companies that have been asking for incentives to set up shop in small towns and cities. National Association of Software and Services Companies has presented a policy recommendation paper to the government ahead of the administration's plan to frame guidelines to promote BPO operations beyond large cities.
Nasscom said expansion into non-metro locations have the potential to generate over one million skilled jobs, enumerating five points focused on employment generation as the central pillar of the BPO industry that employs over 10 lakh people. "At the macro level, the BPM industry with a total revenue of about Rs 1,38,000 crore this year will translate into an economic multiplier of about Rs 5,52,000 crore for non-metro cities, estimated to translate into more than 10 lakh direct jobs in 2015," Nasscom said in its paper titled 'Policy to encourage BPO/BPM operations in Non Metro locations of India'.
India's outsourcing industry has evolved from providing low-end technology services in the early 1990s to more specialised services for customers across a wide range of industries. In the recent years, it has to deal with increased competition from more cost-effective locations such as the Philippines and Vietnam, where outsourcing companies get greater government support.
We have identified 18 - 20 more locations in the country where we have created the infrastructure for employment. It is not only competitiveness, but also the development of emerging cities, harmonising and galvanising the talent pool that is available and creating digitisation capabilities," said KS Viswanathan, vice-president at Nasscom. These locations are Agartala, Belagavi, Chhindwara, Hazira, Karnal, Shivamogga, Srinagar and Vellore.
This initiative will help the Modi government to fulfill the promise of jobs to the youth during its election rallies. Youth being the majority supporters of BJP, this will be a welcome step for the betterment of the job prospects for the youngsters in the tier 2 and 3 cities.
By Premji
