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Wednesday, September 2, 2009

ADFC faced several chaJlenges in locating the BPO in a remote town like Tirupati and making it functional. First of aJl, it was difficult to persuade software vendors and service staff to provide ongOing support in remote locations. Transportation and instaJiation of the hardware was also a tedious exercise. Secondly, connectivity was a major issue. While BSNL connectivity was readily available, it was important to have a second service proVider for business continuity. Lastly, it was essential that a steady and continuous supply of electric .
power was available to ensure that the work in the BPO is not interrupted by unscheduled power cuts.
To mitigate the above constraints, the bank's IT team
persuaded its
software and
hardware vendors
to go to Tirupati to set up the required infrastructure for the BPO. They also persuaded Bharati Airtel to start offering its services to help the BPO build its redundancy. While power supply had
been erratic, the BPO managed with gensets, though it is more expensive.
Explaining how sustainable and economically viable this business model has been, Rajan says the work that is getting migrated to the rural areas wiJl be delivered at a cheaper cost over a period of time. Besides, the quality of work will be at least equal to, if not better than the output from urban areas. Besides, the reduced attrition level is a major attraction to shift BPOs to semi urban towns.
Rajan feels that the rural BPO model is simple enough for other banks to set up similar ventures in rural and semi urban towns. "This is an idea which I wiJl be happy to share with others who have a similar vision."

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