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Why Outsource BPO Services to India?


In order to meet the growing demand for call centers and BPO’s, many organizations throughout the world are outsourcing these services to offshore country like India. India has inherent strengths, which have made it successful outsourcing destination:

Scope

A booming IT industry, with IT strengths recognized all over the world. As India emerges as a global outsourcing hub, the industry is forecast to explode at exponential rates - from 23,000 people and $ 10 million pa in 1998 to over a million people and revenues in excess of $ 20 billion by 2008. Pivotal segments are going to be back office operations, medical transcriptions, insurance claims processing, customer interaction centers and content development. Current trends suggest that the country is well on course for achieving the above target.

Benefits
  • Well educated labor market
  • India has an abundance of computer literate manpower with English as their first language. Indian universities produce 85,000 graduates per year and enjoy a strong reputation in the global business community.
  • Highly cost effective as compared to western countries
  • By outsourcing to India an organization can save as much as 40-50% percent of costs compared to what it would cost in the western countries thus allowing an organization a great competitive edge. In terms of quality the clients' data is processed through the method of conventional "double keying" to provide an excellent accuracy level.
  • A vast pool of educated, English speaking, tech savvy professionals: A boon in a high-growth industry faced with a shortage of skilled workers.
  • Low labor cost
  • The cost of qualified personnel being lower in India than the western countries is attracting several offshore partners to make investments in India.
  • World class infrastructure
  • India administers one of the largest telecom India administers one of the largest telecom networks in Asia with 24.3 million telephone lines expanding @ more than 20% per annum and 123,000 route kilometers of fiber optic cable network. Over 8000 VSATs are installed all over the country by various service providers, private users and Government agencies.
  • Quick turnaround time
  • The time zone difference between India and US can be used to advantage for providing quick turnaround time. While the US sleeps, India works, and vice-versa.
  • The largest English-speaking population after the USA.
  • This effectively gives a 24 hour working environment.

Government policy
  • The Government of India has recognized the potential of IT-enabled services and has taken positive steps by providing numerous incentives.
  • ITES is one of the Government of India's top priority.
  • The National IT Task Force submitted its 108-point Action Plan to promote IT in the country. The Government of India has approved the plan and is in the process of implementing it.
  • A separate Ministry of Information Technology was set up to expedite swift approval and implementation of IT projects and to streamline the regulatory process.
  • Information Technology Act 2000: The Information Technology Bill that was passed in the Indian Parliament in May 2000, has now been notified as the IT Act 2000.
  • Regulatory Enablers
  • 100% foreign ownership permitted in IT Enabled Services industry unlike other sectors where foreign ownership is restricted.
  • Software Technology Parks (STPs) established.
  • To provide ready to plug IT infrastructure and telecom facilities.
  • Single window clearance for all regulatory compliance issues.
  • Infrastructure Enablers
  • Basic, Cellular, and Internet Services privatized.
  • Domestic leased circuit tariff reduced by 80% in last 1 year.
  • International Internet Gateway privatized-likely reduction in tariff.