Thursday, July 23, 2009

Outsourcing between smaller and bigger cities

While I was having dinner at a restaurant in Mumbai and having discussion with few friends suddenly a thought came into my mind. Why not utilise outsourcing concept within India itself? USA has been doing with countries like India then why not within India – between smaller & bigger cities? Though BPOs have been doing it at some places but it is not sufficient. This will generate more requirements at the nearby places/ cities of the big cities and also help in creating talent pool in smaller cities as outsourcing has done to India. This in turn will help containing migration and also in enable bigger cities to sustain bigger populations and undue pressure on the resources will be minimised. What big cities give is the opportunity. If such kind of opportunities could be created at the smaller cities nothing like it.

Economics of such Initiative

Traveling daily in big cities in headache. It almost ‘costs’ 2-3 hours commuting daily. So assuming 25 days in a month the total time lost/ person will be 50-75 hours i.e. more than 2 days in a month. Apart from this the mental hassels, road rage etc. For an organisation with 50 persons it will amount to 2500 – 3750 hours i.e. 104-156 days in a month!! Why don’t HR managers pay any attention towards this? Apart from this bigger cities have more costs. Untill and unless big companies realise this potential there won’t be much infrastructure in smaller cities. Some might cite that there are no proper facilities that is why there are no companies and some say since there are no companies that’s why there are no facilities. It is chicken and egg situtation and companies have to take initiative. People can leave peaceful lives in smaller cities, costs are low, closeness is more, hassles are less etc.

Hope something might happen in this direction.