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Friday, June 26, 2009

India Out Sourcing

The business process outsourcing industry in India refers to the Services Outsourcing Industry in India, catering mainly to Western operations of MNCs (Multinational Corporations).

As of 2008, around 0.7 million people work in outsourcing sector(less than 0.1% of Indians). Annual revenues are around $11 billion, around 1% of GDP. Around 2.5 million people graduate in India every year, but only about 15 percent are suitable for employment in this sector. Wages are rising by 10-15 percent as a result of skill shortage.

Note : As of 20 May 2008 all Indian on-shore workers in the UK and EU are now entitled to the full wage and benefits packages enjoyed by their European counterparts.

India Out Sourcing
This outsourcing process is beneficial to both the outsourcing company and the outsourcing service provider.

The idea of outsourcing has its roots in the 'competitive advantage' theory propagated by Adam Smith in his book 'The Wealth of Nations' which was published in the year 1776. Over the years, the meaning of the term 'outsourcing' has undergone a sea-change. What started off as the shifting of manufacturing goods to countries providing cheap labor during the Industrial Revolution, has taken on a new connotation in today's scenario. In a world where information technology has become the backbone of businesses worldwide, 'outsourcing' is the process through which one company hands over part of its work to another company, making it responsible for the design and implementation of certain business process under the requirements and specifications of the outsourcing company.

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