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Business process outsourcing is basically an association between the service provider and the outsourcing company

What is the history of Indian BPO?

The initial stage of international collaboration wasn’t really astonishing. Some rules that existed didn’t allow Indian business owners to import goods like hardware or software from international markets. A moment came when IBM, an Indian company decided to leave the country when foreign investors were denied more than 40% of equity stakes.


The boom of business process outsourcing actually started in the 1990’s when the rules were bent which led the way to access foreign software and hardware.

When outsourcing did began?

Outsourcing in India is not a new thing at all, it has been present since the 1700’s when people used India’s labor for moving goods from one location to others. In the mid 1990’s GE first started an outsourcing venture located in Gurgaon. Soon other well-known companies like American express and British Airways started adopting outsourcing business which was followed by a pool of other companies.

The progress in technological fields led to the emergence of outsourcing demand. India is the biggest diverse country has the right attributes to excel in the field of outsourcing. Thanks to globalization, a number of countries were now able to utilize their strengths, and mostly the developing countries got a chance to get their work done at minimum cost which was a great profitable idea.

The Indian government finally realized the potential of fruitful economic boost, started easing the rules and regulations so that the Indian venture could start outsourcing in India without much trouble. With the government aid and high number of investors the business process outsourcing saw a massive growth.

Why India became an outsourcing hub?

The IT and BPO sector plays a crucial role in boosting up India’s economy. With the strength of proficient labor and high quality work at affordable prices, it is able to attract huge outsourcing clients from foreign investors. As per NASSCOM, "While India's low-cost talent pool has helped its businesses grow, global incumbents have also recognized India's inherent advantage and have mastered this capability by offshoring more work out of India."

Huge manpower-India alone consist of one billion people, and amongst them at least 1 or 2 million people are associated with the BPO industry. visit poster's website As the BPO sector doesn’t really need much of educational background on the initial stage, students, mostly after college, they are joining BPO for fast growth and to earn handsome salary.

Quality service- Indian workforce is given to professional training and hence the quality of work they produce are quite reliable. Most of the foreign countries are pouring out their capital on outsourcing from India is because of the reason, BPO companies in India deliver great quality of work.

24X7 service- Indian BPO also provide 24 hours support. Rotational shifts and abundant work force make it possible to change shifts and provide assistance in different hours of a day.

Low wages- The main reason why India has become the hub spot of outsourcing is because of the low wages. India offers a competitive rate than the other countries, hence it has become a more favorable outsourcing destination for most of the international companies.