Making E-Governance Centers Financially Sustainable in Rural India: A Conceptual Design for Action Research

9 Pages Posted: 4 Aug 2012 Last revised: 11 Sep 2012

See all articles by Gopal Naik

Gopal Naik

Indian Institute of Management (IIMB), Bangalore - Department of Economics and Social Sciences

Siddharth Joshi

Indian Institute of Management (IIMB), Bangalore, Students

K. P. Basavarajappa

Indian Institute of Management (IIMB), Bangalore

Date Written: December 21, 2010

Abstract

Large-scale failure of telecenters in rural areas has subdued initial high expectations with regard to ICT bringing about developmental changes and given rise to skepticism about the long-term financial sustainability of such telecenters. The experience in many Indian states, including Karnataka, indicates that taking telecenters closer to people in rural areas is fraught with difficulty in terms of making them financially sustainable. Our analysis of the problem identifies the limited range of services provided by these telecenters as the primary cause for their failure. As a remedy, we suggest a three-pronged approach: first, use of these centers for public service delivery as well as public data collection by the government; second, providing a cluster of complete and integrated services to cater to a wider customer base, thus substantially improving value for the rural customers; and third, providing information and other services to businesses with significantly large operations in rural areas. This approach has the dual advantage of making telecenters viable and therefore meeting the requirements of the rural poor as well as helping the government deliver its services more efficiently and effectively in rural areas.

Suggested Citation

Naik, Gopal and Joshi, Siddharth and Basavarajappa, K. P., Making E-Governance Centers Financially Sustainable in Rural India: A Conceptual Design for Action Research (December 21, 2010). IIM Bangalore Research Paper No. 317, Available at SSRN: https://ssrn.com/abstract=2122661 or http://dx.doi.org/10.2139/ssrn.2122661

Gopal Naik (Contact Author)

Indian Institute of Management (IIMB), Bangalore - Department of Economics and Social Sciences ( email )

Bannerghatta Road
Bangalore, Karnataka 560 076
India
2699-3194 (Phone)

Siddharth Joshi

Indian Institute of Management (IIMB), Bangalore, Students ( email )

Banglore
India

K. P. Basavarajappa

Indian Institute of Management (IIMB), Bangalore ( email )

Bannerghatta Road
Bangalore, Karnataka 560076
India

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