Taking IT revolution to smaller cities is like lighting a bulb, says STPI

By Kushagra Dixit

New Delhi, May 10 (IANS) In a move that could herald an IT revolution in small Indian cities, the Software Technology Parks of India (STPI) is all set to launch 1,000 seats in Patna this week, which is likely to create roughly 1,500 vacancies in the sector.

Functioning under the Ministry of Electronics and Information Technology, the STPI has plans to launch 48,000 such seats, with a target employment of 72,450 in the BPO sector, restricted only to the tier-II and III cities as part of its India BPO Promotion Scheme (IBPS).

The scheme is being executed by allocating seats across 50 cities in 20 states. Tata Consultancy Services Ltd (TCS), where 1,000 seats will be inaugurated, is one of the bidders.

The initiative, first of its kind in Bihar, targets employing youth from cities like Muzaffarpur and Dalsinghsarai in the state.

Besides, it also aims to hire youth in cities across India, including Raipur, Siliguri, Shimla, Sopore, Dehradun, Salem, Kozhikode, Tiruchi, Sagar, Nagpur, Ghazipur, Bareilly, Jhansi, Unnao and Varanasi.

"This is for the first time that the industry would set foot in Bihar. Total 4,600 seats had been fixed for Bihar alone, of which 1,910 seats has already been allotted. IT Minister Ravi Shankar Prasad will inaugurate 1,000 seats at TCS on Thursday," STPI Director General Dr. Omkar Rai told IANS.

Based on a 24X7 model and a minimum 50 per cent additional vacancy on one seat (minimum 1,500 vacancies for 1,000 seats), STPI feels that in near future, they would be able to optimise the potential of each seat -- three jobs for one seat.

The turnover from TCS Patna has been estimated at Rs 74,000 crore.

Officials said that beside 48,000 pan India seats, 5,000 additional seats had been created for the north-eastern states.

Speaking of STPI's aspirations, Rai said that initially operations in tier II-III cities would be comparatively small, but would gradually expand.

"We are trying to light a bulb here. India is reputed for its IT industry. The idea of this scheme is not just limited to generating employment or creating an IT revolution in small cities, it's also about taking certain IT processes from metros to smaller places," Rai said.

As per the STPI vision, the BPO's profile is not limited to the IT or software only; the seats planned and offered by it also seek to outsource operations from sectors like healthcare, manufacturing, construction, financial services and hotel industry.

"Ten years from now, places like Gurugram and Pune will have less such processes. Jobs will shift to tier-III cities with only high-end and leadership positions in the big cities. Slowly, the top position will also shift," Rai said.

The idea is to engage the manpower that migrates to big cities to perform the same work, draw almost same salaries and end up saving less, according to officials.

Another driving theory is to maintain the global tag of best "suited destination" for outsourcing by cutting down the operation cost, as countries like Philippines and Bangladesh are also emerging as options.

"It's important that BPOs move from tier-I cities... Cost in tier-III cities is much less. Idea is to harness the problem solving generation in the small cities and providing them a global process-based job in their cities," Rai said.

With the creation of one vacancy in IT sector, as being done in Bihar, three additional jobs would be created, including in allied fields like logistics and support.

"So, speaking of Bihar, space for about 7,000 manpower is being created, which would create allied jobs to the tune of 25,000," Rai said. The total number could vary in individual states, depending on the local conditions.

Counting on the aspirations of Indian youth and reputation of the Indian IT sector, the STPI, on the lines of an incubator, now eyes to tap the potential startups.

"Next time you pass through Bihar in a train, try using Patna-based startup called Rail Restaurant... Such small initiatives will soon become a driving force in cities of Bihar and small towns of nation," Rai said.

(Kushagra Dixit can be contacted at kushagra.d@ians.in)

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