| I will start by explaining you the philosophy behind | | | | see why they chose India... |
| business outsourcing. It is "do what you do best and | | | | India boasts to have the largest pool of qualified |
| leave the rest to Business Process Outsourcing (BPO) | | | | personnel and that is true. Every year 180,000 |
| companies. Companies outsource all their non-core | | | | engineering graduates join the labor market. Google |
| business to Business Outsourcing, in order for them to | | | | has announced that its decision to setup a center in |
| save management time as well as resources. They | | | | Banglore is more motivated by the largest pool of |
| can then focus on developing their core competencies. | | | | skilled people than the financial aspect. |
| I will state some of the newest and most common | | | | Though there is actually a very good telecom |
| tasks that are today being outsourced to BPO | | | | infrastructure in terms of ISP and cellular networks, the |
| companies. These are: Human Resource Management, | | | | government has voted a new National Telecom Policy |
| Internal Audits, processing payrolls and accountancy. | | | | and encouraged private companies to engage |
| The classic ones dealt with by call centers is providing | | | | themselves in the telecommunications sector. The |
| customer service through hot lines, reservations... | | | | excellent submarine and satellite connection provide |
| One of the most important objectives for managers is | | | | you with a good high-bandwidth connection to the rest |
| to maximize shareholder value. To achieve that, they | | | | of the world. |
| will cut down costs. Outsourcing is known to be one of | | | | The stable pro-IT government has voted several bills |
| the ways used to cut down costs. Mckinsey has | | | | that will support the growth of the BPO sector. As one |
| estimated that US companies which develop new | | | | of its objectives is to increase Foreign Direct |
| drugs can save up to $600 million by outsourcing the | | | | Investment, the government provides several |
| development work to India's BPO companies. | | | | incentives to encourage investors to setup there. |
| Outsourcing companies also help you in that they | | | | Some examples are 10 year tax holiday, deduction |
| manage your risks. You will not have to worry about | | | | from expenditure... |
| your technology becoming obsolete not about chasing | | | | Furthermore, you do not have to worry about the legal |
| new technologies. If you outsource, you will be | | | | aspect as India is often changing its laws to be inline |
| covered if the government or other regulating bodies | | | | with the international laws and practices such as the |
| change the rules and regulations that actually prevail. | | | | World Trade Organization. You can also decide which |
| You should be aware that the initial costs involved | | | | laws will apply and state that condition in the contract |
| when you outsource to India are very prohibitive. Do | | | | binding you with the outsourcing company. You can for |
| not let those training and infrastructure setup costs | | | | example state that in case of litigation US Laws will |
| discourage you. Dell, HP and IBM have outsourced to | | | | apply. You therefore don't have to learn or worry |
| India and are making huge amounts of profits. Let us | | | | about India's legal system. |