Rural outsourcing refers to a method in which jobs are transferred away from higher cost urban areas to lower cost rural areas. With increased level of salaries to the employees, real estate prices, and high attrition rates has escalated costs incurred by the BPO industry.
Benefits of Rural outsourcing:
- Lower cost of operations
- Producing loyal and efficient employee base
- Lower operating costs
- Absence of communicational or cultural barriers
- Lower attrition rates
- Proximity to the clients
- Shifting the main business of the rural areas from agriculture to service oriented
- No time zone problems, thus ensuring rapid services
- Politically more acceptable
Disadvantages of Rural outsourcing:
- Lack of availability of financial resources and IT skills
- Lesser experience than the giant outsourcing firms
It is without doubt that the trend of outsourcing abroad isn’t going to disappear anytime soon but looking for virtual team members in small towns, in the form of rural outsourcing would be a triple advantage for your firm-good workers, good for small towns and lower costs.