Cost effective man power is yet another important factor which makes India a hot spot of IT/BPO industry. With a vast pool of skilled human resources ready to work at lower wages in comparison to the European or American countries India is attracting business process outsourcing. In a call interaction center operation, manpower typically accounts for 55 to 60 percent of the total cost. Besides being cost effective, Indians are also skilled and fulfill all the requirements of the IT/BPO industry.
In India, the manpower cost is approximately one-tenth of what it is
overseas. For example, per agent cost in USA is approximately $40,000
while in India it is only $5,000. It is but natural that companies
contract out their work to cost effective destinations like India. India
produces about 100,000 engineers every year. These can be used in call
centers for troubleshooting/tech support, as the salaries are
dramatically lower than in Europe or the US. In such situations MNCs
choose to outsource their business processes to cost effective India
rather than offshoring to other costly destinations.