Rural India: The Emerging Hub for AI Training

Tue Oct 14 2025 23:55:26 GMT+0300 (Eastern European Summer Time)

As artificial intelligence continues to shape the global economy, rural towns in India are stepping into the limelight as effective centers for AI training and development, defying traditional outsourcing trends.

In towns like Virudhunagar, rural Indians are playing pivotal roles in the burgeoning AI sector. Companies are increasingly turning to these regions, promoting job creation while ensuring access to global clients. This shift reflects a transformational movement in the outsourcing industry and signifies the potential of less urbanized areas in tech innovation.

Virudhunagar, a town in southeastern India, is famous for its ancient temples, yet it is its burgeoning role in the high-tech field of artificial intelligence that is drawing attention. Here, workers like Mohan Kumar are engaged in data collection and AI model training, showcasing how rural regions are becoming crucial players in the global technology landscape.

Traditionally, India's IT outsourcing industry has been concentrated in urban centers like Bangalore and Chennai. However, a new trend is emerging, known as 'cloud farming', where companies are relocating their operations to smaller towns where labor and operational costs are lower. Kumar, who annotates data for AI training, states that the skills required remain consistent, regardless of geographical location.

Mohan works for Desicrew, a company that has been at the forefront of this movement since 2005. The CEO, Mannivannan J K, emphasizes their mission to create skilled job opportunities in rural areas, countering the historical trend of urban migration for employment. Currently, about 30-40% of Desicrew’s work involves AI projects, with expectations for this number to rise significantly in the near future.

Women comprise a substantial part of the workforce; over 70% of Desicrew’s employees are women, providing valuable economic support to their families. The new job opportunities also introduce transformative impacts in education and financial security.

Similarly, NextWealth, established in 2008, capitalizes on the untapped graduate market from small towns. With a focus on providing quality AI-related services, they employ 5,000 staff across 11 offices and project a future where their workforce could grow exponentially with the rise of AI technologies.

Despite potential challenges—like the perception of data security and connectivity issues in rural areas—industry experts like KS Viswanathan believe cloud farming is likely to position these towns as the next major hub for AI operations globally. As companies recognize the capabilities of these rural centers, the future of tech outsourcing may shift towards these previously overlooked regions.