IT Outsourcing history of India

The IT Outsourcing history of India measures some steady inflow of investments by giants organizations of world likes of Reuters, that provided large captive IT and Software Outsourcing facilities in India. However, the existing Offshore Outsourcing operations of leading MNCs’ are being ramped for catering with the increasing demand by better & speedier services. With that all the top IT companies of India have announced a part of expansion; by meant to that now they are in the process of hiring human resources for filling the additional seats. India have competitive advantage in their ability by providing large cost savings and gain the productivity, India has an edge for the international market of BPO. NASSCOM- the National Association of Software and Services Company have studied and pinpoint some of the following factors as the main reasons behind success of IT Outsourcing India in world.

• Skilled, English-speaking and abundant manpower that is being harnessed even by IT Outsourcing hubs.
• Strong quality orientation with competitors and with the focus on measures and monitored quality targets.
• Telecom sector improvement and with other infrastructure that is at par with international standards.
• The ability to offer 24hours x 7days services based on the nation's unique locations for geography, which allows for leveraging differences of time zone.
• Positive and proactive policy environment that encourages Business Process Outsourcing investments and simplifies procedure and rules.
• The tax structure is friendly that places the IT Outsourcing India industry on par with global services firms.


Outsourcing to India offers valuable improvements for quality & productivity for offshore organizations with crucial parameters likes of number of total and correct transactions; factor of total satisfaction; hour & average speed at the time of answering etc. Surveys of NASSCOM have revealed that Indian firms are very well focused for maintenance the quality & performance of standards. Indian ITES Organizations are with an ascending curve as far as concerning of the quality standards. Companies, which have achieved the certificate of ISO 9000, are now migrating to the ISO 9000:2000 standards and organizations on the CMM framework are now realigning for the CMMI model. These things are imparted from investment in up gradation for the CRM & ERP initiatives, many Indian BPO companies are acknowledging the certification of COPC for quality and they are trying to achieve COPC licensees.

Despite being a inexperience in the global IT industry, the IT Outsourcing India recorded a growth rate over 50 percent in year 2002-03. The experts of industry consider this as a positive indication for the future time and a look at the ranking & revenue with headcount statistic and potentiality of the industry. The IT Outsourcing industry was valued globally at 773 billion American dollars during year 2002 and estimated to grow at a compounded annual growth rate of 9 percent in between period for the year 2002 to 2006. NASSCOM lists the main indicators for the high growth potentiality of the IT Outsourcing industry in India as follows.

• The no. of Indian IT-employees working jumped to 245,500 by the year 2004.
• Te exports of ITES reported for more than 3.5 billion American dollars in revenues, increases up from 2.5 billion American dollars in 2002-03.
• During year 2003-04, the IT Outsourcing sector is estimated to have achieved more that 50 % growth by revenues compared to the previous year before that.
• The BPO sector has also proved as major employment opportunity, creating jobs for around 74,400 additional professionals in India during 2003-04.
• According to study conducted by NASSCOM and McKinsey & Co., by the end of year 2008, the sector is expected to gave employment more than 1 million Indians. Surveys of the IT Outsourcing India industry in 2004 expected it to follow these trends.

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