Indian IT majors Infosys and Wipro are looking to tap the growing rural outsourcing market. Infosys BPO plans to tie up with service providers having presence in rural areas and small towns for domestic operations.

The revenue-share model would have the company getting the customers and the operators from rural areas providing the service. Wipro BPO would also enter the domestic market. The company already provides technology support to service providers in rural areas and may consider to tie up for service delivery, the sources said.

The domestic market has gained some momentum in the wake of the fall in the global demand. The domestic market is estimated to be growing at a rate of 38%, annually. Shifting to remote areas would be the next big step for companies like Infosys and Wipro. The services could range from native language help-desk to data processing. The aim is to tap cheaper talent and corporate space. It is similar to outsourcing jobs from the US to India.

The average billing rate for domestic clients is less than that for international clients. Hence, offering the services from metros would be unviable because of the cost of living and high salaries that have to be paid. Offering services from rural areas would mean the profit margin for the companies would be good. 

There are a few rural BPO companies like RuralShores, HOV Services, etc. This is just a small percentage of the domestic industry.   Apart from the advantages, there are other areas to be considered like the availability of skilled manpower, broadband connectivity, and electric power supply.