| | APRIL 202219How do you perceive the significance of the government's effort in strengthening virtual infrastructures around broadband and internet connectivity to facilitate the growth of the digital economy?The key is bolstering the entire virtual infrastructure, including broadband internet connectivity. I believe the Prime Minister's Digital India Initiative adheres to three cornerstones ­ Creation, Governance and Citizens' digital empowerment.The first is to set-up the entire digital infrastructure, enable it, and lastly, ensure that the services and governance are enabled through demand. When the government empowers its citizens to use the digital mode of demand and supply creation simultaneously, the virtual infrastructure is strengthened and further facilitates the growth of the digital economy. Generally, the internet alone exerts a strong influence on economic development; and with the government's push, the country's GDP will also have an impact. What are the challenges facing the digital economy line, and how can tier-II cities support this?Firstly, I believe in the element of acceptability. While the government bolsters digital infrastructure, people's mindset in accepting a digital form of life can be a possible challenge, given the countries unhealthy literacy rate. However, there is a tremendous rise in the penetration of digital literacy, wherein small shops, vegetable vendors, and similar others can be seen using Paytm, Google Pay, and other UPIs across the country. The adoption of laptops, computers, and smartphones is a challenge without the added reality that these technologies are not very affordable for those who are yet to acquire them. The moment digital saturation increases, so does the push for acceptability. Tier-II and III cities could lend a hand here since the acceptability and availability of internet-enabled devices are high. Nearly half the numbers of startups developing in these cities contribute to their growth vastly, especially with many KPOs and IT-enabled services shifting there. I think that is where acceptability will increase in a big way.Tell us about the latest trends driving the KPO sector. · First is the demand for near-to-home offshore delivery centers, with most Indian companies eyeing locations like China, and Eastern Europe, including Latin America.· Second, due to lower costs and stability, KPOs are shifting to tier-II and III cities for talent acquisition. In addition, the talent in these cities is more retention friendly as they have inadequate options regarding jobs. · Third are mergers and acquisitions. Most KPOs that observe other companies which are better in skillsets and delivery of services, prefer to merge or acquire them rather than compete with them or spend the time and resources it would take to build employees with those skills.· Lastly, KPOs are now being considered strategic partners. However, there is a gradual decline in these centers as they face hardships around cost factors to carry forth their operations in India. Hence, Indian KPOs are here to stay.Do you consider COVID-19 to be a major accelerator for the quick transformation?Most people from tier-II and III cities who had returned to continue working from home give more reason to invest in these cities. Even countries, initially unwilling to outsource in India, fearing security and the manner of handling of their clients, are now seeing the need for outsourcing. They are finding it challenging to mobilize labor and suitable talent in their own countries and accepting help from others.On the one hand, quite a few of them are willing to outsource to India and other low-cost countries and have found that the delivery quality and service levels are at par, if not better than their delivery centers. On the other hand, due to Covid, staff that hailed from the Tier-II and Tier-III cities returned to work from home, which has further paved the way for opening more KPOs in these cities. This is because they were more cost-effective than the big cities with more expensive commercial space. Indeed, it was more convenient and cost-effective to THE ADOPTION OF LAPTOPS, COMPUTERS, AND SMARTPHONES IS A CHALLENGE WITHOUT THE ADDED REALITY THAT THESE TECHNOLOGIES ARE NOT VERY AFFORDABLE FOR THOSE WHO ARE YET TO ACQUIRE THEM
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