In recent times, businesses have outsourced various back office processes for varied reasons, to increase shareholder value, reduce costs, as an aid to business transformation, to mitigate capital investment and to turn fixed costs into variable costs.

BPO can be used for almost every part of the business-mostly what a company defines as non-core function, for example, administration, accounting, legal, human resources, information technology, manufacturing, sales, sourcing and logistics / supply chain management.

India has intrinsic strengths which have made it a major success as an outsourcing destination.

It is estimated that out of the Fortune 500 companies, almost 400 are now outsourcing some functions from India . It has a booming IT industry, with IT strengths recognized all over the world with 65% of the CMM level 5 companies operating in India ).

Major differentiators for Outsourcing are:

	It has the largest English-speaking population after the USA
	It has cost-effective manpower
	Good technical support staffs are available, ( India graduates about 100,000 IT engineers each year and their salaries are dramatically lower than in Europe or the US ).
	The presence of most international technology vendors and solutions in India enables creation of most advanced set-ups in this technology- intensive segment.