Wednesday, February 28, 2007

Services Business Model for Maid Servants in India

Bodyshopping was the derogative name given to companies that were doing placement services for Indian Software programmers. These companies took 40-60% of the programmers salaries. Infosys and other companies then positioned themselves as companies whose business model is the same as that of consulting companies like Accenture etc. but in software domain.

The success of this business model is now set to proliferate across several other domains, including for Maid Servants. In India, Maid Servants are paid dismally low and they reciprocate by doing a shoddy job. It has been a lose-lose situation for all. Some shrewd Entrepreneurs have adopted the Service Business Model for this domain.. These entrepreneurs assure professional quality service and in turn ensure that the maids are better paid, inducing a cycle of win-win situation for all. Also, hopefully these maids are also provided other benefits related to social security.

As India is vying for a service oriented economy, this business model has to be successful in many many domains, creating win-win situation for all. This adoption is also critical for shifting the large population that is currently underemployed in the Agricultural Sector.

I have been visiting several farms across Tamilnadu. One recurring compliant from small farmers is that it is now very difficult to get labour these days. The Textile Industry has successfully lured the agricultural labourers by providing additional benefits related to social security. If this trend continues, other industries would grow at the expense of agriculture. This would threaten the self-sufficiency of the Country.

My solution for this problem is that someone start a major service agency for agricultural labourers, which would provide benefits on par with other industries. There is seriously lot of money to be made in this space.

The recent walmartization of the Indian retail industry could also be thought of as the adoption of the service model for retail industry. Currently, those working in the retail industry (especially in kirana shops) are more or less like bonded labourers. Streamlining this industry with the service model would lift millions out of poverty.

The adoption of the Service Business Model across domains is inevitable and seems unstoppable.

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