Nearly 40 per cent of IBM’s US employees have the option of working from home. Nearly a third of consulting firm KPMG’s 5,000-odd UK-based employees can do the same. American and European companies now rely heavily on telecommuting to cut costs; especially due to low-cost competition from business process outsourcing (BPO) firms in India.

A home-based workforce is seen as a practical way to save on lease rentals on thousands of square feet of office space and employee commuting costs; and improve employee productivity for the same salary. A recent study by tech research firm IDC says that by 2010, the number of Americans working from home will nearly triple from 112,000 to 300,000.

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In contrast, India Inc. remains stuck in the confines of the office, slowing what could potentially be a $17-billion (Rs 69,700-crore) BPO industry, according to industry sources. Barring the odd freelancer, the home and office continue to be separate realms for the average Indian worker, mostly because telecom networks have failed to connect homes.

Mohit S, 36, (full name withheld to protect identity) used to work with IBM in the US and moved to India two months ago. “I was working from home for at least half the week,” says Mohit. “I came here expecting broadband quality and speed that would make video conferencing possible. This is just not possible in India without a dedicated leased line.”