1. Seminar-ICommon Service Centre (Internet connected service delivery kiosk): Unlocking the Potential of Rural India Mentor: Prof. Dr. Peter StanovnikAuthor: SatyaPrakash Patel

3. Contrast and divide between Urban India vs Rural India

4. Rationale for Internet connected service delivery kiosk(CSC) in rural India To bridge the urban and rural developmental and digital divide in India Enhancing empowerment to rural people through access to government information/public services(e-governance) at their door step. Reduce the poverty in rural area through : (i)increasing job opportunity, (ii)enhancing empowerment, (iii) improving financial security. Opportunity makes markets work for the poor and expands poor people’s assets. Empowerment makes state institutions work better for poor people and removes social barriers. Security helps poor people manage risk. New access to knowledge ,information and education in the remotest part of India. Village knowledge center will integrate with world knowledge economy through IT-BPO services. Achieve an inclusive growth in India to include the large proportion of underprivileged section of society into growth process .The ultimate goal is to improve the economic condition and improve the living standard of rural people to fuel the growth of India.

5. Service Need Matrix for Rural India Service Need Matrix for Rural India

7. Technological framework of CSC Technological framework of CSCs is based on the core infrastructure of National e Networks (SWANs), State Data Centres (SDCs) and Common Services Centers (CSCs) All services supported by 3 infrastructure pillars to facilitate web-enabled Anytime, Anywhere access-(i)Connectivity: State Wide Area Networks (SWANs)/NICNET; (ii) National Data Bank/ State Data Centres ( SDCs); (iii)Common Service Centres (CSCs): primary mode of deliver. There is a National Data Center (NICNET) which is connected to all government department and agencies of central and state government of India to their respective state data centers(SDC). Main role of SDC are securing and hosting of data and its application Its be to act as the- Central repository of the State, provide secure data storage, disaster recovery and remote management functions etc. State Wide Area Network(SWAN) is serving government to government (G2G) services and government to citizen services(G2C), especially for various mission mode projects(MMPs) like CSC. CSCs are broad band enable service provider kiosk having at least following technical infrastructure-two P.C.s/laptop ,two printer ,web/digital camera, wireless connectivity ,UPS/invertor/ generator.

8. Technological framework of CSC

10. Service Framework of CSCs The Common Services Centers (CSC) are proposed to be the delivery points for Government, Private and Social Sector services to rural citizens of India at their doorstep . The CSC Scheme is envisaged to be a bottom-up model for delivery of content, services, information and knowledge on Private Public Partnership (PPP)Model. End-to-end Services: The key driver for the selection of content and services would be their end-to-end applicability. This means that a specific content/ service should be in a marketable format for it to be selected as a part of the service network in the CSCs. Broadly, the services selection would be on their ability to impact the consumer through the saving cost, helping income generation and enabling socio –economic generation.

12. Service Ecosystem of CSC

13. Opportunity Space for CSC and Potential of Rural India These services empowering the rural people and bring transparency and accountability in government functioning, creating new job and enhancing their income. It provide new access to education, knowledge, micro- financing, agriculture extension and health Services. These services catalyse the social change and social development. It also provide new distribution channel for products and service in rural area, this market linkage opens new economic opportunity in rural India ANC –ORG MARG Survey report 2006 states that a conservative estimate of the total expenditure that a household could spend on CSC offered different services will be 6.75% of a mean monthly expenditure of Rs.4739 SahajSreiSahaj e-Village pvt. ltd( a SCA) estimated in 2008 that a rural Indian citizen spend Rs.639 per month on CSCs offered services. Average population in the catchment area of one CSC is 8159 on the basis of population of India in 2007(total population of India=1.2 billion and rural population=815million estimated). So total opportunity per CSC per month is around Rs. 52,13,000(5.2 million rupees.) hence the total opportunity available for 100,000 CSCs in country is around Rs.5213 billion(869 billion Euro).Presently on an average only 5%to 10% opportunity is tapped by one CSC.

14. Analysis of CSC offered Services e-Government service offered by CSCs have their significance that they helps CSCs to recognise in rural community as an authenticated service provider .These service provide assured source of income to CSCs. These four government services provides Rs.4894 per month to each CSC, while govt. of U.P. proposed to include 35 government services in the basket of CSC . This indicates the financial viability of CSC.

15. Top 80% Revenue Generating Services of CSC

16. Analysis of B2C services and B2B Services offered by CSC CSCs have a potential to become the gateway for tapping the rural market by companies offering different product and services. CSCs opening new distribution channel for product and services. Indicus Analysis Pvt. Ltd., New Delhi market survey report 2008-09 - despite of economic slowdown the market of personal care and home care product was bulking trend because these companies have discovered rural markets, which now contribute a little more than half the total sale for such product in country. CSC empowers the rural people through government service and save their money and time .It creates new jobs and a helps in poverty reduction. It also offers new access to financial, agricultural and health related services as well as new knowledge, information and education. The average number of professionals emerged as 60 youths in sample villages of Uttar Pradesh(India).Of those who attained some professional education, 38% were employed as professionals and 7% were service (govt., private or tuitions). However, 32% such professionally qualified were still engaged in cultivation or in some kind of labour work.”--[ANC-ORG MARG Survey] These 32%professional educated youth can enhance their skill through CSCs offered vocational education , computer education and English speaking course and can be engaged in IT-BPO industry. These IT educated youth become a prime driver of emerging rural economy of India.

17. Challenges and Issues before CSC scheme Despite of this remarkable progress, CSC scheme is facing some major challenges in the following field -- Delay in deployment of G2C services Lack of Entrepreneurship in VLEs Lack of capacity building effort Inconsistent Connectivity and Electricity Inadequate content in regional languages Lack of Awareness about ICT and CSC Scheme Minor challenges that are equally affecting the rollout progress of CSC scheme and its sustainability e.g. suitable place selection for CSC, appropriate population in the catchment area of an CSC, inappropriate monitoring system for VLEs, lack of credibility of VLEs in local rural community due to inconsistent service delivery, maintenance of computers in remote area etc.

18. Strategic Assessment of CSC project : SWOT Analysis of CSC

20. Framework for analysing a business model of CSC Investment size-- It is defined as-maximum investment is the amount of cash required before a company achieves positive cash flow The total investment size of a business model is depends on several factors including-- company’s revenue model, cost drivers and critical success factors. Investment size of CSC is the sum of capital, variable and fixed cost . A cash flow diagram provides the means for capturing and summarizing information relating to the cash requirement of a business model. Critical Success Factor--The date of first cash flow and the date of cash breakeven directly proportional to critical success factors. A critical success factor is an operational factor or competency that a company must possess in order for it to be sustainable and profitability . The sustainability and profitability of CSC’s business model depends on some key factors- selection of appropriate VLEs, selection of appropriate venue of CSC and catchment area of CSC, credibility of VLEs and CSC, adequate connectivity and consistent power supply, timely roll out of G2C and B2C services and their content in local language, capacity building of all stakeholders of CSC eco system, awareness in public about CSC and benefits of CSC offered services, role of government and attitude of government functionaries.(Explained in Challenges and Issues of CSC)

21. Cash Flow Diagram of CSC

23. The CSC offered IT-Computer and English skill courses will transform the young rural population into skilled human resources for IT-BPO industry

24. . SCAs will play the role of driver in this business model. SCA will bags the IT/ITes contracts/business from domestic and offshore markets and then they sublet to CSC. These CSC will distribute work among IT and English educated rural youths. CSC will acts as coordinator between SCA and these rural youth.

25. This IT enable rural workforce is cheap in compare to urban based workforce in India. Indian IT/ITes services become cheap in compared to other TI/ITes providing countries in the world.

26. This lucrative business attracts more private investment in rural areas, other than CSCs. In future more and more IT infrastructure and parks will develop. In future IT/ITes industry will connected with most of rural households.

27. Rural youth and specially women who are engaged in agriculture but their productivity is insignificant, they can be successfully shifted in service sector.

29. Conclusion-I The CSC is a great effort by the government of India making government and commercial services accessible to rural people at their doorstep on an affordable prices with a vision to bridge urban-rural development The goal of the CSC project is to empower the rural community and catalyse social change through modern technologies. These CSCs will become a vehicle for rural inclusion and inclusive growth to unlock the potential of rural India. Analysis of technological framework of CSC indicates need for improving connectivity and infrastructural facility on priority basis. organisational cohesion and better coordination between SCA and government agencies like SDA is needed. Success and sustainability of CSC is very much depends on selection of appropriate SCAs and VLEs Analysis of services framework suggest that delay in deployment of G2C services and road blocking attitude of government functionaries are demotivating the VLEs that hampering the progress of CSC roll out CSC scheme is facing major challenges like -----lack of content in local language, lack of awareness about CSC in rural community, inadequate capacity building effort to enhance the efficiency of VLEs and government functionaries. These challenges must be addressed in an integrated manner.

30. Conclusion-II Strategic analysis of CSC through SWOT gives a broad picture of internal and external potential and challenges that helps us to focus on some key issue like how to build disposable income in rural community and building market linkages through CSC offered services. Critical analysis of existing business model of CSC is suggests that the some new model should also be adopted for sustainability and profitability of CSC. This paper suggest a supplementary knowledge based business model of CSC on the basis of building a pool of skilled cyber work force in each village through CSC offered IT training and English skill courses. On a driving seat SCAs bags the IT/ITeS business contracts from domestic and foreign market and execute the task through VLEs-rural cyber workforce channel at a cheaper cost. So the benefits of outsourcing will trickle down in rural community that increase the disposable income of rural people and uplift their quality of life. This strategy will bridge the urban-rural divide and India will able to achieve an inclusive growth.