Government Set To Expand BPO Scheme Under Digital India Initiative To 1 Lakh Seats

The Union government is planning to expand its BPO promotion scheme under the Digital India initiative, with Union Minister Ravi Shankar Prasad stating on Monday that it will more than double the number of seats under the scheme.

Launched a few years earlier, the India BPO Promotion scheme (IBPS) is aimed at creating employment opportunities and promoting BPO operations across the country to secure balanced regional growth of IT/ITES industry.

The India BPO Promotion Scheme (IBPS), envisaged under Digital India Programme, seeks to incentivize establishment of 48,300 seats in respect of BPO/ITES operations across the country.

It is distributed among each State in a proportion of State’s population with an outlay of Rs. 493 Crore. This would help in capacity building in smaller cities in terms of infra & manpower and would become a basis for next wave of IT/ITES led growth.

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 & specially enabled persons.

An incentive for generating employment beyond target & wider dispersal within the state including rural areas.

Encouragement for local entrepreneurs.

Special consideration for Hilly states of HP, J&K and UK.

This scheme has potential to create employment opportunities of around 1.5 lakh direct jobs considering three-shift operations. It may also create a good number of indirect jobs.

BPO / ITES Industry is one of the fastest growing segments under the Information Technology sector in the country. It has immense potential to grow and expand further because of its readiness to deliver at par with global standards and inherent cost advantage.

Currently, most revenue by this sector is generated from, in and around, the metropolitan areas of Bengaluru, Chennai, Delhi NCR, Hyderabad, Kolkata, Mumbai and Pune. Other parts of the country, having availability of talent pool and infrastructure, are yet to reap the benefits of this global boom.

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