New Incentives Available for Outsourcing Companies in Rural Areas

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Aug. 25 – A rural business process outsourcing (BPO) policy was announced last Wednesday by the Tamil Nadu government that would give economic incentives for BPOs opening in rural areas.

“Tamil Nadu being a major Information and Communication Technology (ICT) Hub and with the ICT industry now expanding to Tier II, Tier III cities, and towns and indeed into villages in Tamil Nadu, it is indispensable to have a comprehensive Rural BPO policy to increase employment in the rural areas of state,” the government said in a statement.

The subsidies will cover capital and training for BPO offices in village areas and can be worth as much as Rs. 750,000.

There will also be a 15 percent capital subsidy for existing investments worth up to a maximum of Rs. 300,000 given that the  BPO unit has been running for at least three years and employing a minimum of 100 persons.

The Tamil Nadu government has committed to contributing  Rs. 1,500 a month for three months as part of its training subsidy for BPO companies.

BPO businesses in rural areas can work as shown by the success of the Sanasandiram Chennathur panchayat.

Tamil Nadu is the capital of Chennai and lies in nearby Puducherry, Kerala, Karnataka and Andra Pradesh.

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