India is now leading in the world for offshore outsourcing i.e. the remote servicing of information technology (IT) and other business processes India based staff. A recent survey says that the estimated value of outsourcing to India in 2007 was $47.8bn (24bn pounds). Expansion is taking place fast and it is predicted that the IT outsourcing industry is growing at about 28% a year.

This sector has become a very vital for the overall economy of India, as it creates growth and brings wealth in country. IT, BPO (business process outsourcing) and KPO (knowledge process outsourcing) services now account for 5.4% of India’s gross domestic product (GDP). The huge impact is seen on cities such as Bangalore, as it is the centre of the industry.

India’s success in hi-tech services has been unnoticed. From Mexico to Vietnam, local governments are busy in creating friendly tax policies, where offshore work is free of domestic taxes. But the fact remains that none of these countries can match the absolute scale of India.

India is a land where more than two million candidates graduate every year from various universities. Countries like Poland, Hungary and the Czech Republic are less attractive for who want highly skilled people. Among other outsourcing nations only China can match and come close to India. China is a land with over 1 billion graduates entering industry each year.

Both India and China are highly dynamic with large developing economies. The remaining nations are trying to match India’s strength in global services. India is a place where a complete outsourcing contract with broad reaching quality with productivity is achieved.

China is not focusing on becoming the world leader, but it creates conditions that make the country the privileged destination for IT outsourcing. Russia and Brazil are still to catch up. Russia is a talented pool and also offers competitive costs, but lack of government support hold them back.

India is a pearl harbor for providing technical support service. The back office hubs get thousands of calls every night from across the world regarding various queries. The success of Indian BPO Industries resulted in the birth of KPO. Along with BPO, KPO is also leading in the outsourcing business.

This is the reason why Indian out sourcing business is growing day by day.