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    Tamil Nadu pips karnataka but loses to Andhra Pradesh in India BPO Promotion Scheme

    Marquee companies such as Amazon, deciding to set up a massive base of its BPO operations in TN, have helped the southern state (7,805 seats) edge past neighbour Karnataka (2,900 seats) as far as the India BPO Promotion Scheme (IBPS) is concerned.

    Tamil Nadu pips karnataka but loses to Andhra Pradesh in India BPO Promotion Scheme
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    Chennai

    However, Andhra Pradesh remains at the top, with BPO players grabbing 14,692 seats, spurred by the state’s marketing machinery, a source revealed.

    Rolled out by the Centre under the Digital India Programme in 2016, to spread IT opportunities beyond the metros. The IBPS is an initiative to incentivise establishment of 48,300 seats in respect of BPO/ITES operations across the country. Distributed to each state proportionately to that state’s population, the project entails an outlay of Rs 493 crore.


    Aimed at capacity building in smaller cities in terms of infra and manpower, the project was conceived to become the basis for the next wave of IT/ITES-led growth. The source in Software Technology Parks of India (STPI) said the primary objective of job creation in secondary cities had been successful in TN, where the Rs 1 lakh per seat funding for capital and operations, had worked well. “TN was allotted 2,800 seats but it has exceeded by a huge margin. This reflects the state’s ability to attract talent and the availability of a robust infrastructure as the prime drivers for BPO firms including MNCs getting drawn to TN,” the source said, noting that the companies in the banking, financial, data processing, healthcare and e-publishing space had set up their operations in 43 locations in 14 districts.


    According to the source, data shows from 1,700 seats being occupied under the scheme in 2016, the BPO companies have scaled up their operations and steadily enhanced their presence with some of them even having multiple centres. In 2017, it was 3,700 firms while the latest update shows the figure as 7,805.

    • Total number of seats 48,300
    • Seat allocation till date 51,297
    • Budget outlay Rs 493 crore
    • Potential employment 1.5 Lakh (Source: STPI)

    Coimbatore tops the district list, where BPOs have taken up 3,545 seats. Other major locations include Tiruchirapalli at 740 seats, Namakkal at 600 and Nagapattinam at 450. Vellore and Madurai too have shown good absorbing capacity with each location having 400 seats. Even Nilgiris has a BPO that has 25 seating facility, the source said, pointing to the growth spread to remote corners.


    Rather than seek greener pastures in Chennai, the scheme has enabled the possibility of “job coming to the doorsteps.” It is a win-win for all as parents are happy and especially in the case of young girls, the need to travel and set up a base in the city is no longer required. Female employed under the IBPS project is 2,889 while males constitute 3338. Of the 43 units with a potential of generating 10,600 jobs, 29 units have commenced operations generating employment to 6,227 people, the source said.


    Also, that companies have chosen such non-metro locations reflects the availability of bandwidth and electricity, crucial parameters for BPO operations. Be it the optical fibre connectivity or the common infrastructure, the firms have ranked these destinations as suitable hotspots, the source added.

    Salient Features

    • up to 50% of expenditure incurred on BPO/ITES operations towards capital expenditure (CAPEX) and/or operational expenditure (OPEX) on admissible items, subject to an upper ceiling of Rs 1 Lakh/Seat
    • Special incentives toward employment of women and specially enabled persons
    • Incentive for generating employment beyond target and wider dispersal within state including rural areas
    • Encouragement for local entrepreneurs
    • Special consideration for hilly states of Himachal Pradesh, Jammu & Kashmir and Uttarakhand

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