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In order to meet the growing international demand for lucrative, customer-interaction centers, many organizations worldwide are outsourcing these services from locations like India. India has inherent strengths, which have made it a major success as an outsourcing destination:
A booming IT industry, with IT strengths recognized all over the world.
The largest English-speaking population after the USA.
A vast workforce of educated, English speaking, tech-savvy personnel.
Cost-effective manpower: In a call interaction center operation, manpower typically accounts for 55 to 60 percent of the total cost. In India, the manpower cost is approximately one-tenth of what it is overseas. Per agent cost in USA is approximately $40,000 while in India it is only $5,000.
 
Government policy
 
  • The Government of India has recognized the potential of IT-enabled services and has taken positive steps by providing numerous incentives.
  • IT is one of the Government of India's top five priorities.
  • The National IT Task Force submitted its 108-point Action Plan to promote IT in the country. The Government of India has approved the plan and is in the process of implementing it.
  • A separate Ministry of Information Technology was set up to expedite swift approval and implementation of IT projects and to streamline the regulatory process.
  • Information Technology Act 2000: The Information Technology Bill that was passed in the Indian Parliament in May 2000, has now been notified as the IT Act 2000. The IT Bill brings E-commerce within the purview of law and accords stringent punishments to "cyber criminals". With this, India joins a select band of 12 nations that have cyber laws.
 
Regulatory Enablers
 
  • 100% foreign ownership permitted in IT Enabled Services industry unlike other sectors where foreign ownership is restricted.
  • Software Technology Parks (STPs) established.
  • To provide ready to plug IT infrastructure and telecom facilities.
  • Single window clearance for all regulatory compliance issues.
 
Infrastructure Enablers
 
  • Basic, Cellular, Paging and Internet Services privatized.
  • Domestic leased circuit tariff reduced by 80% in last 1 year.
  • International Internet Gateway privatized-likely reduction in tariff.



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