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• Aim of reducing internal costs
  
  The third most prominent driver of growth in this market is a desire by enterprises to extract all possible costs from within their internal operations. Any chance of decreasing transaction-processing costs frees up precious capital that can then be applied to more strategic initiatives.

OUTSOURCING TO INDIA

The outsourcing industry in India is growing very fast, especially as it pertains to the legal profession. Current projections are for outsourcing and related industries to be a $10-billion industry in the next five years.

There are an increasing number of back-office services that are being handled in India including credit checks, debt collection, research, software development, IT support, accounting support, and medical records, just to name a few.

The outsourcing industry is comprised of some very large Indian companies who have centers in several locations. There are also a number of United States companies which have large Indian subsidiaries that provide similar services. Hinduja, a large Indian conglomerate, and Bharti, the Indian telephone company, both operate large centers. Both companies have offices in the United States.

India has effectively provided outsourcing solutions to different Fortune 500 companies. General Electric, Citibank, Morgan Stanley, Wal-Mart, AT&T, Reebok, General Motors, Sony, Boeing, Coca-Cola, Pepsi, Swiss Air, United Airlines, Philips, IBM, Lucas, British Aerospace and Sears are some companies relying on software companies in India.

Outsourcing service centres in India are able to deliver superior quality because of specialization and scale benefits. India already has a large and rapidly growing number of IT-enabled services providers collectively covering a wide range of services with different levels of complexity and value added.

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* Contributed by -
Shuchi Singla,
Global Business Operations, Semester-11,
Shri Ram College Of Commerce,
University Of Delhi.