IndoBase Business Process Outsourcing

Outsourcing and cost cutting go together. This page highlights the cost effective part of the Indian BPO industry. Cost cutting is one of those factors that attract outsourcing to Indian BPO vendors

BPO : Why India : Cost-effective


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.

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