Outsourcing is the planned transfer of a business process or function to a third party service provider, in order to allow an organisation to achieve tangible business benefits. It is the contracting out of a company’s non-core, non-revenue producing activities to specialist service providers.

Outsourcing helps an organization cut costs and improve focus towards its core activities, enabling it to achieve a technical and functional edge over its business rivals. Outsourcing is a strategy to optimize time and increase customer satisfaction by allowing employees to concentrate on revenue-generating activities of the organization.

The IT Enabled Services Sector (ITES) in India continues to grow at an annual rate of 50 % and will create 60,000 new jobs every year. According to the NASSCOM – McKinsey Survey 2002, by the year 2008, the ITES Sector in India will exceed US $ 20 billion in revenue and will employ 1.1 million people.

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• A highly skilled and qualified workforce is available at a very favorable wage differential.
  
  
• The work force is educated and fluent in the English language.
  
  
• The time difference with Europe and the US works in India’s favor.
  
  
• By outsourcing non-core services to India, companies are able to operate 24 hours a day, seven days a week.
  
  
• Availability of state-of-the-art infrastructure.
  
  
• Supportive government policies.
  
  
• Tried and tested model – many small and large companies around the world are using India as a hub for their outsourcing ventures.