Business services Feb, 04 2010

Reaping Profits 24X7

Success knows neither day nor night. So, working when most are asleep can spell success for many a business. Leasing out existing properties to run franchised businesses by night is a new kind of business proposition which hopes to pick up speed. Read on

By Abha Garyali
Sub Editor
Reaping Profits 24X7

A tie-up between Aryans Group, a US based BPO company and Reliance World, an Anil Dhirubhai Ambani Group, is the result of reducing business risks, economy of scale, cost factor advantage, better proficiency and increased consumption in India. Such factors have led to the growth of the BPO industry in India, where a tie-up like this can indeed bring ample business opportunities to the aspirants. According to the agreement, Aryan Group will provide franchise opportunities to the BPO sector in alliance with Reliance World that will provide the entire infrastructure to facilitate these BPOs, by leasing its 240 outlets in 105 cities for the purpose of opening call centres.

Gone are the days, when BPOs were found only in metros and big cities. With changing times, every house has got computer with an internet facility. The actual market for BPOs and call centres lies with smaller cities where Reliance World has its existing outlets. Deepak Kapoor, Director - Corporate Affairs, Aryans Communication justifying the above says, “I have seen that there is a lot of potential in the people of tier II and III cities and smaller towns.” With franchising, even small entrepreneurs with limited investments can own and run these BPO centres profitably.

Why small cities?

Let us have a look at the various reasons for this:

  • Number of cyber cafes: As compared to the metro and big cities, there are more of cyber cafés in smaller towns. A possible reason for this is that in the cities internet is easily accessible but in the latter one has to visit a cyber café. Therefore opening up a call centre is much easier in these small towns due to the cyber café culture.
  • Source of employment: If we look at the statistics of employees of any call centre, it would be seen that most of the employees are from small towns. These young people take rental accommodation and therefore half of their salary is spent on it. Therefore a call centre at their home town would make it easier for them to find employment.
  • Aspirations of youth: Another reason for this is the youth of small towns have high aims and aspirations and they strive harder to achieve their goals. Therefore, as prospective franchisees of a call centre they are sure to make them work. 

Investment and training

Owning a BPO is now possible even in smaller cities, with low cost franchise investment yet high profits. Sundeep Saksena, National Head (BPO), Reliance Web World, informed, “Prospective franchisee needs to invest according to the number of seats available in the outlet. For 18 seats BPO the investment would be Rs 18 lakh which would include the cost of infrastructure, technology, support and training etc.” Moreover, extensive training would be provided to the franchisees in terms of assistance in negotiating with infrastructure as per the needs of the business, corporate training to train franchisees for better production, account managers to stay and assist with operational issues for the first two months etc. Training issues would be taken care by the Aryans Group.

Prospects of the tie up

The tie up between Reliance World and Aryans Group is referred to as “A ‘marriage of convenience’ with Reliance World’s outlets being leased out to be used at night by call centre franchisees,” adds Saksena.  The unique concept has already been implemented in two to three Reliance World outlets and is benefiting the company (Reliance) by:

24 X 7 profits: Reliance World outlets are present in all big and small cities and towns. These function during the days and lie vacant at night. With the idea of opening call centres in their outlets, Reliance World would earn profits even at night. Presently, the company has 240 functional outlets. Saksena briefed, “We plan to lease out all our 240 outlets to the franchisees in the coming years. We hope to have at least 50 franchisees in the current year.”

No extra costs: All Reliance World outlets are connected to Reliance's countrywide optic fibre network. Reliance World leverages this broadband network to offer broadband surfing, online gaming, video conferencing, digital services etc and obviously the telephone connections. Therefore, no extra charges would be incurred by the company as they have the regular infrastructure needed for proper functioning of the call centre.

Less of involvement: Reliance outlets would be involved in leasing out their outlets and their infrastructure only. Selection, training and managing of the franchisees would be carried out by the Aryans Group. Thereby the company would not be in any way burdened by the openings of the call centres but would gain by getting rents.

Benefits enjoyed by Aryans Communication Link are as given below:

Tie-up with the giants: The tie-up has proved very beneficial for the Aryans Group as they have had the opportunity to be related to the industry giants, Reliance World. Getting the brand name of Reliance can undoubtedly impress and attract many aspiring entrepreneurs to take up BPO franchising.

Tapping the untapped potential: This venture is providing small entrepreneurs an opportunity to start a business by taking up a franchise. Deepak Kapoor, Director- Corporate Affairs, Aryans Communication Link says, “Not many players have had the unique idea to franchise in the BPO sector, which has a great scope in India.”

World-class infrastructure: Most importantly Aryans would benefit in terms of the infrastructure provided by Reliance World. Kapoor shared,I can say that the best infrastructure of the country can be provided to our franchisees by Reliance World.”

Such ventures in future will empower the youth and provide successful business opportunity in India.

Related: Fulfilling biz dreams by refilling cartridges

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