Introduction of Outsourcing

Outsourcing is also known as BPO(Business Process Outsourcing). It is a recent issue in our economy. Outsourcing happens only when a country producers want to get a job in a foreign country or moments of jobs from a country to foreign country. In India outsourcing is a popular issue because many people in India were going to other foreign country only for jobs. In the It sector outsourcing captured an international dimension many US companies find more profit to contract with the IT software and service in India. The cost for the services in developing countries are less than the developed countries.

India is the second largest English speaking technical resources sector after USA. In IT services India is one stop manpower solutions destination. India buys more business services then the US, UK or China. The US has net surplus from outsourcing other countries with similar surpluses included the UK, India, Singapore, Hong Kong and Switzerland. Many US companies cut a portion of their annual capital cost by reducing the IT department and moving to work in India.


Presently the jobs from USA to India covers a range of professional skills. In addition to IT services such as software maintenance and low level coding. It have expanded to sophisticated IT task such as web application development, XML, software design, architecture and management. In addition IT enables business services such as data entry low level processing, customer call center, telemarketing, collections accounting, human resources procurement and help desks are being outsourced by banks, insurance companies, lenders, credit card companies, airlines and utility providers.

Rough estimate indicates that in recent years 4 lakh to 5 lakh IT jobs for moved out from the USA over the next decade. So the demand for outsourcing work in India will continue to grow as long as it is cost effective and provided high quality of service is maintained. The knowledge based economy, innovation, competition conserve capital, reduce cost, improve quality focus on core and globalization of markets are the main reason for outsourcing.

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