- The India BPO Promotion Scheme (IBPS), envisaged under Digital India Programme, seeks to incentivize establishment of 48,300 seats in respect of BPO/ITES operations across the country.
- It is distributed among each State in proportion of State’s population with an outlay of Rs. 493 Crore. This would help in capacity building in smaller cities in terms of infra & manpower and would become basis for next wave of IT/ITES led growth.
- Creation of employment opportunities for the youth, by promoting the IT/ IT Enabled Services (ITES) Industry particularly by setting up the BPO/ITES operations
- Financial Support: Up to 50% of expenditure incurred on BPO/ITES operations towards capital expenditure (CAPEX) and/or operational expenditure (OPEX) on admissible items, subject to an upper ceiling of Rs. 1 Lakh/Seat.
- Special incentives toward employment of women & specially enabled persons.
- Incentive for generating employment beyond target & wider dispersal within state including rural areas.
- Encouragement for local entrepreneurs.
- Special consideration for Hilly states of HP, J&K and UK.
- It also involves encouragement of local entrepreneurs and special consideration for Hilly areas and rural areas.
- Metro Cities Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, NCR & Pune has been excluded from scheme.
- Implementing Agency – Software Technology Park of India (STPI), an autonomous society under the MeitY
- There is also a separate North-East BPO Promotion Scheme under the Digital India Programme to incentivise establishment of 5000 seats of BPO/ITES operations in NorthEast.
This scheme has potential to create employment opportunities of around 1.5 lakh direct jobs considering three shift operations. It may also create good number of indirect jobs.