The Hindu Business Line : Satyam fraud could hit rural BPO units

Hyderabad, Jan. 13 Besides casting doubts over the future of 53,000 jobs in cities, the Satyam fraud also hit vulnerable people in rural areas, who are working in rural BPOs set up by the Byrraju Foundation.

At present four units of ‘GramIT’ (rural BPO units) are functional in Jelli Kakinada (West Godavari Dist), Eethakota, Antarvedi Palem (East Godavari dist) and Kaji Palem (Guntur district) employing over 500 rural youths to handle basic back office works.

According to Mr Verghese K. Jacob, Chief Integrator and Lead Partner Byrraju Foundation, 200 out of 500 are directly working for Satyam Computers whose existence is in question currently.

These people need to be diverted to the new projects (if any), while the remaining people are working for other clients such as TCS, he told Business Line.

The employees in these BPO units are paid Rs 3,000 to Rs 4,000 as the objective is to provide cost advantage to the clients by over 25 per cent.

Uncertainty abound

Now there is uncertainty about the fate of GramITs too. “I am told by a teacher in our village today that my son’s office will be closed soon. We were happy that our son is working in information technology. But now they say he will lose job,” Mr Rama Rao, a small farmer in Eeethakota, said over phone.

What is discernable is the loss of a strong belief that IT key to social prestige and wealth among the rural folks. “We thought IT is a matter of pride. But we are afraid now,” he added.

However, Mr Jacob sees no trouble in the long run for GramITs. “In cost terms, the rural BPO units are supporting themselves and are not dependent on any aid from the Foundation. In fact, we are also planning to expand,” he said.

But the sustainability and expansion remains to be seen as the Foundation spends Rs 75,000 in setting up a single seat in a BPO unit.