| India, undoubtedly, stands out like a giant as an | | | | 30 years. The differential in wages between the |
| outsourcing destination. Despite many new | | | | parent location and India is often as high as 70%. |
| countries like Romania and Philippines and china | | | | • Insurance and banking-According to Nasscom |
| plunging into the fray India still emerges a leader | | | | insurance and banking generate a large |
| for various reasons. The first and foremost | | | | percentage of cost savings because of the high |
| reason is that it is most cost effective. | | | | proportion of processes that can come offshore. |
| Companies which outsource to India save at least | | | | According to Nasscom the US banking and |
| 60% of their costs according to the National | | | | financial sector .has made savings to the tune of |
| Association of Software and Services. There is | | | | $8 billion in the last four years simply because it |
| great competition for cost but when one | | | | outsourced to India. • Versatility is another |
| compares cost it is not done in isolation. Factors | | | | factor which makes India cost effective. There is |
| like quality, professionalism and dependability also | | | | no dearth of IT professionals, transcriptors, |
| have to be taken into account. India is the most | | | | managerial talent and writers in India. They are |
| cost effective because • Labor cost-The labor | | | | available under one umbrella. • Low personal |
| cost advantage makes outsourcing to India very | | | | costs-there is a wide gap between the personal |
| cost effective. The salary of an average call | | | | costs in India and the developed countries. Thus |
| centre employee is about 15% cheaper in India | | | | countries which outsource to India benefit |
| than in UK. This is likely to last for the next 20 to | | | | economically. |