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Published by:
IBS Research Center (2006)
11 pages
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By the end of the 1990s, India was looked upon as a prominent outsourcing destination for information technology (IT) projects. The availability of sufficient IT resources, quality manpower at cheap cost and the key geographical location benefited India. The seeds of the business process outsourcing industry (BPO), were sown in India by British Airways, HSBC and General Electric (GE) in the 1990s. Gradually the industry grew, as many multinational corporations outsourced their IT related lower end jobs to India. With the growing hype of job attractiveness in the industry, the salary levels of employees increased, which was considered to be a hurdle for the prospects of the country. Also, India had to face competition from countries like the Philippines, South Africa and China who were growing fast. What steps Indian companies would take to revive India''s future in the BPO industry was to be seen. The case discusses the various parameters on which India had gained competitive advantage in the past. Furthermore, it explains the factors with which the competing countries were trying to turn the trend towards them.


Business process outsourcing (BPO); Information technology (IT) industry; Information technology enabled sources (ITES); India; Outsourcing; Market share; Exports; Value chain; Cost advantages; High talent pool; IT infrastructure; National Association of Software and Service Companies (NASSCOM)
USD12 billion exports (2004)
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