The present scenario in the business world is that of innovative cost cutting. The Tata group, one of India's biggest conglomerates, too, aims at achieving cost efficiencies with business synergies.

For this reason, it plans to build BPOs in rural India.

R.Gopalakrishnan, Executive Director of Tata Sons, is all focused on his next big project, which is, building rural BPOs. The idea is not   only a social initiative but a pure business strategy, as well.

The salt-to-software group has plans to employ 5000 people in the next five years for its rural BPO operations, to support its telecoms and direct to home businesses.

The Tata Group has three rural BPOs already in Andhra Pradesh, Gujarat and Uttar Pradesh. Now the group is looking forward to setting up more rural BPOs with its other group companies to serve its regional customers for Tata Indicom.

"In urban India as you know, BPOs have an extremely high rate of attrition which has huge cost impacts. This is what made them turn towards rural areas. But clearly, they have to find a partner in rural areas, as they don't have the infrastructure. Luckily Tata group has many companies in rural areas and they first partnered with Tata Chemicals. In due course of time, we will partner with other Tata Companies," said Gopalakrishnan.

Discussions are in progress with Tata Power, Tata Steel and Tata Motors to set up customer centers for Tata sky, Tata Teleservices and Virgin Mobile in the rural BPOs. The shared arrangement would certainly imply infrastructure cost savings and 60 per cent cheaper workforce.