Calcutta, June 8: Industry association Nasscom expects cloud technology to play a crucial role in managing the costs of BPOs expanding in tier-II and tier-III cities.
The Union government is finalising a policy to expand the BPO sector in the non-metros.
It has earmarked around Rs 500 crore as incentives to companies setting up call centres in small cities.
"Today, a large part of the revenue of the Indian business process management industry is coming from 89 metro locations, including Calcutta," K. S. Viswanathan, vice-president of Nasscom, told The Telegraph.
He added that 43 locations have been identified, including Bengal and Bihar in the eastern region, to expand the reach of BPOs.
The adoption of cloud-based technology will help the BPOs to manage costs more efficiently and shift from an input-based pricing model to an outcome-based business model where the earnings will be based on a pre-agreed outcome, Visw-anathan said.
"With cloud technology, BPOs can significantly cut down their upfront capital expenditure, as there is only a marginal cost incurred on hardware and software compared with traditional IT infrastructure.
"Further, BPOs can be started in rural areas with basic equipment and Internet connectivity and there is no overhead cost such as real estate expenses," said Reeta Gangwani, vice-president (marketing) of Ozonetel, a Hyderabad-based company offering cloud-based technology solution to BPO companies.
Gangwani said BPOs could start operation in multiple locations using cloud technology and trim technology upgradation expenses.
Ozonetel is looking to grow its revenue 10 times to Rs 250 crore by 2016-17 through the greater adoption of cloud technology by BPOs.