Centre to extend STPI scheme for BPO companies

Bangalore, June 7 (UNI) The Union Government will extend the Software Technology Parks of India (STPI) scheme to the Business Process Outsourcing (BPO) sector for another ten years, Union Communications and Information Technology Minister Dayanidhi Maran announced today.

Replying to a demand for extension of the scheme, which provided a host of tax benefits, the Minister, speaking at the India ITES-BPO Strategy Summit-2006, organised by NASSCOM here, said ''I fully support your demand for the extension of STPI scheme. STPI has become fully independent and its success should be extended, especially to small and medium enterprises.'' The fast growing BPO sector, which offered huge employment opportunities to youth, would continue to get the Government's support, but the industry too should join hands with the Government in creating better facilities and infrastructure, Mr Maran said.

On the choking infrastructure in big cities like Bangalore due to the presence of a large number of IT, ITeS and BPO firms, he said these companies should move out to tier-II and tier-III cities to help State Governments manage State capitals better.

Though India was a leader in the BPO sector, it would now face fierce competition from many developing countries, which had realised the employment generating potential of the sector, he said.

The Minister said working jointly with the State Governments, the BPO sector should consider launching pilot projects in States to impart BPO training to youths at the school and college level. ''We must provide cutting edge knowledge to our girls and boys by training them early in modern technology and services. We should do what others (countries) cannot do. This should be our motto.'' MORE UNI RS GD TS1655