Thursday 19 July 2007

Outsourcing, Village-Style

Most of the outsourcing in India takes place in and around cities. It is a huge industry, bringing in lots of revenue and aiding in the development of a class of higher-skilled workers. At the same time, it also increases the divide between wealthy urban and impoverished rural India.

But Drishtee is doing something about it. This week, I went on an unusual business trip to Bihar, the poorest state in India. After a grueling 26-hour overnight train ride and 2-hour bumpy car ride, we arrived at our Drishtee outpost in the middle of nowhere. Amidst mud roads and reed huts was a one-story concrete building with 20 intact computer workstations. Through a unique bio-generator and VSAT satellite technology, there is power and wireless Internet (most of the time!). Take a look.


The program is remarkable. Drishtee provides a vocational BPO school. Students in their late teens or early twenties enroll in a three-year program. They receive intensive computer training at the outset and then learn by working. While working, they are also paid for their efforts.

At the moment, the group was working on data-editing. A company in Australia had scanned millions of books onto CDs. They sent the CDs to Drishtee to be checked for minor formatting errors. The BPO staff will go through every page of every book, make changes as necessary and send the CDs back to Australia. They will be paid based on completion and accuracy.

This model is amazing because it creates real economic opportunity in the heart of the rural village. There are limitations – the start-up costs are high (so tuition is higher than most can afford), it is difficult to get resources around here and there are no experienced managers available locally – but it is a great start.

I do not intend to start a debate on outsourcing on this blog. I will say, however, that this outsourcing project has the potential to truly change lives in this village. Young people can work, develop skills and bring in outside capital – all of which is likely to raise the standards of living for the community.


Here is a picture of Pankaj, one of my co-workers who is overseeing the project. Recognizing the limited experience of the BPO students, he came in from Delhi to ensure that they are properly trained and prepared to do the work. While aware of the operational challenges, he also recognizes that these students are absolutely committed to doing the best job they can do. Pretty inspirational stuff.

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