Karnataka Planning Jobs in Rural Areas, to Amend Rural BPO Policy

In a bid to create more IT-based employment opportunities in rural areas, the state government of Karnataka is planning to bring changes to the policy of rural business process outsourcing (BPOs).

The move would also cover expansion of the IT sector in Tier II and III cities.

Addressing presspersons on the side lines of BangaloreIT.biz2011 promotional event, Mr M.N. Vidyashankar, Karnataka principal secretary, department of IT, BT and e-governance, said the present policy bars rural BPOs from partnering with IT companies for taking up front-end jobs such as software development or back-end processes. They could only operate as independent entities within the district.

Also likely to be amended is the domicile requirement in setting up BPOs which is now hindering fresh investments in the districts, “We are working towards amending the policy and hopefully it will come up before the State Cabinet in time to be launched during BangaloreIT.biz2011 to be held from October 18 to 20,” said Mr Vidyashankar.

There are 31 rural BPOs spread across eight districts. Many BPOs in addition to servicing local requirements have made a foray into international markets in the US, Europe and Latin America.

Mr Vidyashankar said that when the rural BPO policy was adopted, there were 42 BPOs in the State, but only 31 have survived.

Karnataka is planning to showcase few rural BPOs to other states at the BangaloreIT.biz2011 event. According to Mr Vidyashankar, Bihar, Gujarat, West Bengal, Orissa, Punjab, Tamil Nadu, Andhra Pradesh, and Kerala have confirmed their participation.