The IT sector in Hyderabad, which accounts for 15 percent of the total exports from India, began its journey with BPOs and gradually moved up the value chain. BPOs are set to repeat this experiment, this time in tier II and III cities of Telangana. Eight rural BPOs will be set up in Warangal, Karimnagar and Kamareddy, each with a capacity of 250 seats or more.
Of the three locations, Warangal will see more BPOs than other location, a top official said. “We have got in touch with many players when we visited the US recently. Of them, three will materialise soon. One each will come up at Karimnagar, Warangal and Kamareddy,” said Jayesh Ranjan, secretary, department of information technology and communications.
Ranjan said some of them who are inclined to invest in Telangana have asked the government to set up infrastructure facilities to ease the process of putting into place their units. The state government has asked the companies to look at smaller cities instead of surrounding Hyderabad for deriving a cost arbitrage.
The BPO at Karimnagar has already made a small beginning and has plans to expand. The team wanting to set up a BPO at Kamareddy will visit the place next week to take the proposals forward. At Warangal, civil works are on for the project.
“We will process some more applications for BPOs this week. We are asking them to choose small cities instead of Hyderabad. We will give additional incentives for coming to tier II and III cities to set up rural BPOs,” Ranjan said, adding that the government is in talks with a technology company that secured an order to digitise insurance records.