Digital India

What is Digital India and how it will help India

How Digital India will transform the country
How Digital India will transform the country

Digital India is a flagship campaign of the Indian government launched by Shri Narendra Modi, the Prime Minister of India to ensure that Government services are made available to citizens electronically by improving online infrastructure and by increasing Internet connectivity or by making the country digitally empowered in the field of technology.

The Digital India mission consists of three core components, which are:

  • The creation of digital infrastructure which includes plans to connect rural areas with high-speed internet networks.
  • Delivery of services – government and non-government digitally
  • Digital literacy among the masses

What is outsourcing?

The term ‘outsourcing’ involves the contracting out of a process driven business function (say, payroll processing, insurance claims processing, etc), and/or non-core functions such as customer service call center support to a third party. The concept “outsourcing” came from the metamorphosis of the term ‘outside resourcing in the American Glossary. We are more familiar with the offshoring version of business process outsourcing thanks to thousands of BPOs and KPOs serving their American and European counterparts.

The drivers behind Domestic BPOs

As Indian metros and tier I cities are getting overpopulated, they are also becoming ever more expensive. Cities like Bengaluru, New Delhi and Mumbai are some of the most expensive cities in the south Asian region and compete with the most expensive in the world. The cost of living, particularly housing, has increased tremendously and consequently the employees need to be paid more. Hiring employees who live in the tier II / III and rurban centres but have had a good education is likely to be a better idea than making people migrate to work at offices, far far away from their new homes in megacities, with daily non-productive commute durations reaching unsustainable proportions. This is the state of all large cities with public infrastructure crippling as population grows to unsustainable levels.

The economic rationale

There exists a clear and visible arbitrage profits in terms of costs savings (real estate, cost of living) if certain services and business processes are migrated from metro and tier I cities of India to tier II or III and rurban (‘Adarsh Gram’ literally, Ideal Village) centres across India.

The advent of Digital India means that the missing link – digital infrastructure and high speed connectivity to even rural India will be available.

With all pieces of the puzzle available on the board and a determined player in Shri Narendra Modi to solve the jigsaw, domestic outsourcing is about to take off in a manner never thought off before.

Nirmal Ghorawat

Nirmal Ghorawat

The author is a member of the Institute of Chartered Accountants of India.
Nirmal Ghorawat

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