While ancient temples stand testament to India’s rich history in places like Virudhunagar, a new era of technological advancement is unfolding nearby. Artificial intelligence (AI) is being trained and refined in these very communities, thanks to a burgeoning ‘cloud farming’ industry.
Mohan Kumar, a resident of Virudhunagar, is at the forefront of this shift. His work involves collecting, labeling, and training AI models, a crucial step in enabling machines to recognize and predict objects. “Over time, the models become semi-supervised and can make decisions on their own,” he explains.
Traditionally, IT outsourcing has been concentrated in major Indian cities like Bangalore and Chennai. However, companies are increasingly looking to cost-effective, remote locations like Virudhunagar to tap into a vast talent pool. This trend, known as cloud farming, is receiving a significant boost from the demands of AI development.
Contrary to what one might expect, working in a smaller town doesn’t mean missing out on opportunities. Kumar states, “Professionally, there is no real difference. Whether in small towns or metros, we work with the same global clients from the US and Europe, and the training and skills required are the same.”
Companies like Desicrew, a pioneer in cloud farming since 2005, are proving that quality work can be delivered from anywhere. Their CEO, Mannivannan J K, highlights the mission to create careers closer to home for rural youth. “For too long, opportunities have been concentrated in cities, leaving rural youth behind,” he says. Desicrew’s services span software testing, AI dataset creation, and content moderation, with AI-related work projected to grow significantly.
Transcription, the conversion of audio to text, is a key area of focus. “Machines understand text far better,” J K explains. “For AI to work naturally, machines must be trained to understand variations in how people speak. That’s why transcription is such a crucial step, it forms the foundation for machines to comprehend and respond across languages, dialects, and contexts.”
He emphasizes that these rural centers rival urban IT hubs with secure data access, reliable connectivity, and uninterrupted power. Notably, around 70% of Desicrew’s workforce is female, with many women gaining their first salaried jobs, leading to transformative impacts on their families.
NextWealth, another leading cloud farming company, echoes this sentiment. Co-founder Mythily Ramesh points out that while 60% of India’s graduates come from small towns, most IT firms overlook this talent. “That leaves behind a huge untapped pool of smart, first-generation graduates,” she notes. NextWealth, which employs 5,000 people across 11 locations, has seen its AI-related work expand rapidly.
Ramesh believes India’s small towns are perfectly positioned to support the global AI boom. “The world’s most advanced algorithms are being trained and validated in India’s small towns,” she asserts, predicting that AI and GenAI could create millions of jobs in the coming years.
Technology advisor KS Viswanathan notes that while Silicon Valley builds the AI engines, India’s cloud farming industry ensures their reliability. He sees a tipping point where small-town India could become the world’s AI operations hub, mirroring its earlier success in IT services. However, challenges remain, including ensuring consistent high-speed internet and convincing international clients of robust data security standards, which must be earned through reliable delivery.
Dhanalakshmi Vijay, working at NextWealth, exemplifies the fine-tuning process of AI models. By correcting errors, such as distinguishing between a blue denim jacket and a navy shirt, she helps improve AI accuracy. “It’s me and team who indirectly train the AI models to make your online shopping experience easy and hassle-free,” she says.