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The Outsourcing History of India

The outsourcing history of India is one of phenomenal growth in a very short span of time.

Why Outsource to India?

If Software Engineering Institute's 'Capability Maturity Model Level 5' is the highest quality certification in the software industry, then India's the place to be. With 65% of the world's CMM Level 5 companies and one of the world's largest pool of scientific and technical talent, India is a logical choice for outsourcing.

What can be outsourced to India?

At a glance see IT related outsourcing options to India. This list, although not extensive, will entice you with the overwhelming potential and possibilities of outsourcing. Click here and begin to explore a new way of doing business.

Job Outsourcing to India

With the advent of globalization, more and more jobs are being outsourced to India. The outsourcing trend has brought with it a vast number of opportunities to India. So why are people outsourcing jobs to India? Let’s find out why job outsourcing has become so popular.

India Offers High-Quality Services

Outsourcing to India is now more about high quality rather than cost. Indian companies are fast scaling up to match or surpass international quality standards and are ensuring that they stay ahead through stable quality systems and continuous quality improvement.

Outsourcing BPO Services to India

Outsourcing BPO Services to India offers benefits not only in terms of cost reduction, but also in terms of increased productivity and quality. Companies along with their customers benefit since they can access some of the best talent and expertise in the industry at lower rates.

BPOs in India

Business process outsourcing or BPO in India has evolved from its early ‘sweat-shop’ image to the status of a strategic differentiator in the global marketplace. BPO is the contracting of a business task to a third party service provider. Factors responsible for outsourcing success are: quality processes, scalability, integration of global markets and seamless global delivery of work across borders through the internet.

The Investment Hub of India

Bangalore possesses much of the attraction of other cities in India for the BPO sector; talented resources, good educational institutions, a large English speaking population, and technological prowess. However, it is a proactive state government that makes constant efforts to facilitate new investments, which gives Bangalore an edge over other Indian cities.

High Rise Bangalore

Bangalore has good infrastructure, with large floor space and great telecom facilities. With a huge number of IT/ITES companies, R&D and product development facilities, and call centers mushrooming the demand for commercial space has risen drastically. These companies want the best space, with high ceiling heights, good broadband connectivity and areas of around 40,000 to 50,000 square feet.

Intellectual Property Outsourcing

Intellectual property (IP) refers to creations of the mind: inventions, literary and artistic works, symbols, names, images and designs used in commerce. IP plays an important role in an increasingly broad range of areas, ranging from the internet to healthcare to nearly all aspects of science and technology, law, literature and the arts.

>Business Opportunities in India

Are you looking at reducing your software development costs? One attractive way would be to relocate some of the development work to countries like India. While there are tremendous opportunities in these countries, a clearer understanding of the tax and legal formalities could mean the difference between smooth outsourcing of work and a confusing tangle of delays and cost overruns. Here's an article that discusses these issues in depth, without the confusing legalese.

The Legal Aspects of Outsourcing to India

If you are considering outsourcing to India, but need some information on the legal issues in offshore outsourcing or are worried about whether your contract will be honored by the Indian Legal System, read on.

The Outsourcing History of India

The idea of outsourcing has its roots in the 'competitive advantage' theory propagated by Adam Smith in his book 'The Wealth of Nations' which was published in the year 1776. Over the years, the meaning of the term 'outsourcing' has undergone a sea-change. What started off as the shifting of manufacturing goods to countries providing cheap labor during the Industrial Revolution, has taken on a new connotation in today's scenario. In a world where information technology has become the backbone of businesses worldwide, 'outsourcing' is the process through which one company hands over part of its work to another company, making it responsible for the design and implementation of certain business process under the requirements and specifications of the outsourcing company.

This outsourcing process is beneficial to both the outsourcing company and the outsourcing service provider. In an outsourcing relationship, the outsourcing service provider enables the outsourcer to reduce operating costs, increase quality in non core areas of business, save on effort and increase in productivity Outsource2india (QuicSolv), a pioneer in outsourcing since the year 1999, provides ten distinct services which cater to a wide range of industries. Outsource to QuicSolv and get access to proficient and cost-effective services.

Since the onset of globalization in India during the early 1990s, successive Indian governments have pursued programs of economic reform committed to liberalization and privatization. Until the year 1994, the Indian telecom sector was under the control of the governmental. The state owned units in India enjoyed a monopoly in the market. In the year 1994, the government announced a policy under which the sector was liberalized and private participation was encouraged. The ‘New Telecom Policy’ of 1999 brought in further changes with the introduction of IP telephony and ended the state monopoly on international calling facilities. This brought about a drastic reduction heralded the golden era for the ITES/BPO industry. This in turn ushered in a slew of inbound call center/telemarketing services and data processing centers.

Although the IT industry in India has existed since the early 1980s, it was the early and mid 1990s that saw the emergence of outsourcing. One of the first outsourced services was medical transcription, but outsourcing of business processes like data processing, medical billing, and customer support began towards the end of the 1990s when MNCs established wholly owned subsidiaries which catered to the offshoring requirements of their parent companies. Some of the earliest players in the Indian outsourcing market were American Express, GE Capital and British Airways.

At Outsource2india, we provide call center services, data entry services, engineering services, financial services, creative services, web analytics services, healthcare services, photo editing services, software development , research and analysis services and a host of other additional services. Outsource to Outsource2india and get access to competitive services that can give your business a competitive edge!

The ITES or BPO industry is a sector in India that has been in existence for a little more than ten years. Despite its recent arrival on the Indian scene, the industry has grown phenomenally and has now become a very important part of the export-oriented IT software and services environment. It initially began as an activity confined to multinational companies, but today it has developed into a broad based business platform backed by leading Indian IT software and services organizations and other third party service providers.

The ITES/BPO market expanded its base with the entry of Indian IT companies. The ITES market of the present day is characterized by the existence of these IT giants who are able to leverage their broad skill-sets and global clientele to offer a wide spectrum of services. The spectrum of services offered by Indian companies has evolved substantially from its humble beginnings. Today, Indian companies are offering a variety of outsourced services ranging from customer care, medical transcription, medical billing services and database marketing, to Web sales/marketing, accounting, tax processing, transaction document management, telesales/telemarketing, HR hiring and biotech research.

Looking at the success of India's IT industry, the central government identified the ITES sector as a key contributor to the economic growth that prioritized the attraction of FDI in this segment by establishing 'Software Technology Parks' and 'Export Enterprise Zones'. Benefits like tax-holidays generally enjoyed by the software industry were also made available to the ITES/BPO sector. The National Telecom Policy (NTP) was introduced in the year 1999 and the deregulation of the telecom industry opened up national, long distance, and international connectivity to competition. The governments of various states also provided assistance to companies to overcome the recruitment, retention, and training challenges, in order to attract investments to their region.

The National Association of Software and Service Companies (NASSCOM) has created platforms for the dissemination of knowledge and research in the industry through its surveys and conferences. NASSCOM acts as an 'advisor, consultant and coordinating body' for the ITES/BPO industry and liaisons between the central and state government committees and the industry. The ardent advocacy of the ITES/BPO industry has led to the inclusion of call centers in the 'Business Auxiliary Services' segment, thereby ensuring exemption from service tax under the Finance Bill.

These measures have led to a steady inflow of investments by large foreign companies such as Reuters, for establishing large captive ITES/BPO facilities across India. Moreover, the existing ITES/BPO operations of major multi-nationals are also being ramped up to cater to the ever increasing demand for better and speedier services. Almost all of India's top ITES/BPO giants have announced some form of expansion and are in the process of hiring manpower to fill in the additional seats. India's competitive advantage lies in its ability to provide huge cost savings thereby enabling productivity gains and this has given India an edge in the global ITES/BPO marketplace. NASSCOM studies pinpoint the following factors as the major reasons behind India's success in this industry.

• Abundant, skilled, English-speaking manpower, which is being harnessed even by ITES hubs such as Singapore and Ireland
• High-end telecom and infrastructure which is at par with global standards
• Strong quality orientation among players and their focus on measuring and monitoring quality targets
• Fast turnaround times and the ability to offer 24x7 services based on the country's unique geographic location that allows for leveraging time zone differences
• Proactive and positive policy environment which encourages ITES/BPO investments and simplifies rules and procedures
• A friendly tax structure, which places the ITES/BPO industry on par with IT services companies.

Outsourcing to India offers significant improvements in quality and productivity for overseas companies on crucial parameters such as number of correct transactions, number of total transactions, total satisfaction factor, number of transactions/hours and the average speed of answers. Surveys by NASSCOM also revealed that Indian companies are better focused on maintaining quality and performance standards. Indian ITES/BPO companies are on an ascending curve as far as the quality standards are concerned. Organizations that have achieved ISO 9000 certification are migrating to the ISO 9000:2000 standards and companies on the CMM framework are realigning themselves to the CMMI model. Apart from investing in upgrading their CRM and ERP initiatives, many Indian ITES companies are beginning to acknowledge the COPC certifications for quality and are working towards achieving COPC licenses.

Despite being a fledgling in the global ITES/BPO industry, the Indian ITES industry recorded a growth rate in excess of 50% in the years 2002-03. Industry experts consider this a positive indication of the times to come and a look at the ranking and the revenue and headcount statistics show the potential of the industry. The global ITES/BPO industry was valued at around US$ 773 billion during the year 2002 and according to estimates by the International Data Corporation worldwide, it is expected to grow at a Compounded Annual Growth Rate (CAGR) of 9% in the future. NASSCOM lists the major indicators of the high growth potential of the ITES/BPO industry in India as the following.

• During the years 2003-04, the ITES-BPO segment achieved a 54 percent growth in revenues as compared to the previous years
• ITES exports accounted for US$ 3.6 billion in revenues, up from US$ 2.5 billion during the years 2002-03
• The ITES-BPO segment also proved to be a major opportunity for job seekers, creating employment for around 74,400 additional personnel in India during the years 2003-04
• The number of Indians working for the ITES sector jumped to 245,500 in the year 2004
• In the future, the BPO segment is expected to employ over 1.1 million Indians, according to studies conducted by NASSCOM and leading business Intelligence company, McKinsey & Co. Market research shows that in terms of job creation, the ITES-BPO industry is growing at over 50 percent

Surveys of the Indian ITES/BPO industry have shown the following trends:

• Customer care: Customer care and support services will continue to lead in terms of revenue generation.
• Finance: With the financial services segment moving into value added domains like insurance claims processing, financial management services and equity research, this segment is expected to clock the highest growth.
• HR services: HR services are also expected to grow in the future.
• Payment services: This segment has also been identified as a high growth area within the industry, and is expected to generate high revenues.
• Administration: Revenues from the administration services segment are expected to increase in the future.
• Content development: The content development services segment which includes engineering and design services, digitization (GIS), animation, network management and biotech research, is expected clock a large turnover in the future.

The availability of technically trained and skilled manpower in India is making companies across the world look at the country as a profitable base to shift their high-end support services. Companies like COLT Technology Services are considering outsourcing their technical back-office support work to India. Other areas are high-end network engineering/management support. Another field which is showing immense potential is that of digital content creation and animation. Animation studios like Walt Disney, MGM and Warner Brothers are already outsourcing low-end work like clean-ups, tweening and modelling to India. The availability of skilled and trained manpower and India's ability to keep in step with the latest technological advances in the industry is prompting foreign studios to consider India as a base to shift other high-end animation work like storyboarding and developing original content for animated films ad TV series. Teleradiology is the next segment that holds great promise, mainly due to the time zone differences and the availability of highly skilled radiologists. Engineering services like CAD/CAM 2D, 3D and CAE modeling and design automation are the latest additions to the ever increasing list of processes being outsourced to India.

Outsource to QuicSolv

Outsource2india offers cost-effective services without compromising on quality. We have skilled, experienced and well trained professional who can provide you with world-class services. At QuicSolv, we always deliver our services ahead of time. When you outsource to Outsource2india, you can be assured of a quick turnaround time. Outsource your services to QuicSolv and benefit from our expert, proficient and technology-driven services.

Please contact us with your outsourcing requirements.

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Why Outsource to India?

Today, outsourcing has almost become the order of the day. So why are global organizations choosing outsourcing? More and more global companies are choosing to outsource today for a number of reasons, such as, cost-effective services, increased efficiency, increased productivity, shared risks, reduced operating costs, increased quality, better services and more time to focus on core competencies. These are just a few of the reasons why organizations are outsourcing today. But why outsource to India and why do companies outsource to India. India is the most ideal place to outsource to, because India offers several advantages.

India has been a pioneer in providing outsourcing solutions and has been providing a range of outsourcing services to countries across the globe. Today, India can be called as the world’s outsourcing hub. Outsourcing to India can help your organization benefit from cost-effective services, high-quality services, reduced operating costs, greater flexibility and faster-time-to-market amongst others. These are just a few reasons why companies outsource to India. Another reason why outsourcing to India makes good business sense is because India has high-end technology and best-of-breed infrastructure. India has now become the world’s most preferred outsourcing location. India is also the global hub for software enabled services and software development.

Outsourcing to India can give your organization a competitive edge. The following are a list of reasons why companies outsource to India.

1. Cost-effective services

The numero uno reason why global organizations outsource to India is because India offers cost-effective services. Outsourcing to India can help you save more than half of your operating costs! India has a large, educated, trained and technically skilled manpower and this number only keeps growing every year. Unlike the west, where technical talent is rare, India has a large pool of highly-skilled professionals. Having a large technically skilled manpower has enabled India to provide cost-effective services without compromising on quality. Outsourcing to India, can help you save on your operating costs, while increasing your productivity, quality and efficiency.

2. High-quality services

India uses the latest in software, technology and infrastructure to provide global customers with high-quality outsourcing solutions. India has proved that it is technically superior when compared to other countries that provide outsourcing solutions. So, when you outsource your work to India, you can be assured that the best technology and software would be used for your services. India has the largest English-speaking audience after the U.S. India also has a highly educated manpower that is talented, educated, experienced, technically-skilled and computer literate. Outsource to India and be assured of high-quality services.

3. Time Zone Advantages

The time zone advantages between India and countries in the U.S and U.K has proved to be another important factor why companies outsource to India. Organizations who wish to provide their customer with 24x7x365 days customer support or helpdesk services can outsource to India.

4. India’s stable government

India has celebrated more than 60 years of democracy and has one of the world’s most stable governments. Building up the IT sector has been a top priority for the Indian government. India has a ministry of information technology that quickly approves the implementation of IT projects and streamlines regulatory processes. The Indian government has even released a bill termed as the “IT act 2000” India has been rated to have the most excellent investment potential in the coming years. The Indian government has given complete support to the IT and ITES industry in India. With ample support from the government, Indians have been able to build high-tech IT parks which has the best in technology and infrastructure. The Indian government has even permitted 100% foreign equity. India’s fast growing economy has been yet another reason why companies are outsourcing to India.

5. The Indian Advantage

Cost-effective services are one of the primary advantages that India offers, but it is not the only advantage of outsourcing to India. Outsourcing to India can give you access to professional and skilled outsourcing solutions within a fast turnaround time. By outsourcing to India, your organization can concentrate on core business activities and save on time, effort, manpower and infrastructure. More than 20 Indian software companies have achieved the prestigious SEI-CMM level. India also has the highest number of ISO-9000 software organizations. Outsource to India and give your organization a competitive advantage.

6. Global organizations’ most preferred choice

India has been the most preferred choice among global organization when it comes to outsourcing. In the U.S alone, more than 80% have ranked India as their first choice, when outsourcing software and IT services. The U.S has also recognized India as an outsourcing superpower. The number of organizations outsourcing services to India has only been increasing over the years. This is reason enough to outsource to India.

Outsourcing to Outsource2india

Outsource2india (QuicSolv) a pioneer in outsourcing is located in Bangalore, the silicon valley of India. QuicSolv offers call center services, data entry services, engineering services, financial services, creative services, web analytics services, healthcare services, photo editing services, software development, research and analysis services and a host of other additional services. At Outsource2india, we have vast experience in serving a large number of global customers. Find out more about QuicSolv’s outsourcing solutions.

Why Outsource to QuicSolv?

• High-quality and cost-effective services
• High-end technology and best-of-breed infrastructure
• Skilled, talented and experienced professionals
• Wide range of experience in providing outsourcing solutions
• Wide range of services
• Save on time, effort and infrastructure by outsourcing
• Maximize revenue and minimize expenses
• Quick turnaround time
• Latest software and technologies

Outsource your services to Outsource2india and give your organization a competitive edge!

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What can be outsourced to India?

Do you want to outsource a part of your business processes but are wondering whether the job you have in mind can be outsourced? Are you unaware about which jobs can be outsourced? The answer to these questions is that almost any business process or work can be outsourced as long as data transfer is possible.

One such location to whom almost any work can be outsourced is India. India has experienced professionals in almost every field. You can outsource all your IT services and IT enabled services to India. There are outsourcing providers in India who also have efficiency in services that are not related to IT.

Why choose Outsource2india as your outsourcing provider?

A much acclaimed outsourcing provider in India is Outsource2india (QuicSolv). QuicSolv is located in Bangalore, the silicon valley of India. At Outsource2india, we provide an entire range of technology-driven services that can give your organization a competitive advantage! Outsourcing to QuicSolv can help you save on time, effort, manpower and infrastructure and at the same time give you access to skilled and professional services. Outsource to QuicSolv and increase your revenue, productivity and delivery time.

When you choose Outsource2india as your outsourcing partner, you can get access to a wide array of services. You will not have to spend time and energy getting different vendors for different services, as QuicSolv is a one-stop destination for anything that you may wish to outsource.

We have delivery centers located in Peru, Bolivia, The Philippines, India, China, Kenya, Chile, Argentina and Vietnam. With our global delivery centers we provide services from the location which has the most efficiency in that particular service. This enables us to provide our customers with quality solutions at a cost-effective price.

What are the services that can be outsourced to India?

Call center services

• Inbound call center services
• Outbound call center services
• Technical helpdesk services
• CATI services
• Disaster recovery services
• Email support services
• Chat support services
• Spanish telemarketing services
• Virtual call center services

Data entry services

• Data entry services
• Data conversion services
• Data processing services
• Catalog conversion services
• Spanish data entry services
• Spanish translation services

Transcription services

• Legal transcription services
• Video transcription services
• Audio transcription services
• Market research transcription services
• Academic research transcription services
• Media transcription services
• Business transcription services
• Toll free dictation transcription services
• Spanish transcription services
• Foreign language transcription
• Audio editing services

Engineering services

• Mechanical engineering services
• Civil engineering services
• Architectural services
• Structural engineering services

Healthcare services

• Medical billing and coding
• Medical claims processing
• Healthcare accounts receivable services
• Medical transcription
• Teleradiology
• EMR software
• Impact analysis software
• Practice management software
• Claims processing software
• Medical animation
• Clinical services

Financial services

• Write-up services
• Bookkeeping services
• Accounts payable services
• Accounts receivable services
• Financial reporting services
• Accounts reconciliation services
• Tax preparation
• Vat returns
• Payroll services
• Financial analysis services
• Insurance services

Software Development

• Software testing services
• Maintenance services
• Website design services
• Infrastructure management services
• Web enabling legacy applications
• Software as a service (SAAS)
• Open source software development
• Content management systems
• Customer relationship management
• Product development services

Photo Editing services

• Image clipping services
• Image manipulation services
• Photo restoration services
• Conversion of raw images
• Image enhancement services
• Image blending services
• Image stitching services

Web analytics services

• Software configuration services
• Data auditing services
• Dashboard creation services
• Reporting and analysis services
• Website optimization services

Apart from this list, other services can also be outsourced to India. Almost any service can be outsourced to Outsource2india.

Choose QuicSolv as your outsourcing partner and experience hassle-free outsourcing.

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The Benefits of Job Outsourcing to QuicSolv

With the advent of globalization, more and more jobs are being outsourced to India. The outsourcing trend has brought with it a vast number of opportunities to India. So why are people outsourcing jobs to India? Let's find out why job outsourcing has become so popular.

Although outsourcing has been prevalent for a long time, it has never been as large as it is now. When jobs were being outsourced from the US to countries such as, Mexico, no one realized that outsourcing would cause such a major impact on India. India has become the world's outsourcing hub and has become the most ideal place for offshore outsourcing. This trend of sending jobs to India has been termed as "job outsourcing"

Outsource2india (QuicSolv) is a pioneer in outsourcing and is located in Bangalore, the silicon valley of India. QuicSolv has been providing high-quality services across a wide range of industries. Outsource to QuicSolv and give your organization a competitive edge!

Job outsourcing has bought plenty of jobs to India. India too has been able to attract jobs from the US and other European countries. With this excessive job outsourcing to India to reduce costs, there has been a loss of jobs in the US. However this has not stopped the trend of job outsourcing. In fact, more and more outsourcers feel that job outsourcing can help them gain a competitive edge in their business.

Benefits of Outsourcing Jobs to India

Today, communication can be made between two countries without any difficulty. The development in communication and technology has broken down barriers. There are no longer any barriers between countries and this has made job outsourcing to India possible.

1. Faster and Better Communication

Job outsourcing has only become possible because of the improvements in communications. Since communication has become so fast, easy and simple, distance is no longer a barrier between two organizations, no matter where in the world the organizations are located. Advancements in calling, emailing and chatting have made communication throughout the course of a project easy. Today, even video conferencing is possible and people can see each other, although they are miles apart. Companies no longer hesitate to opt for job outsourcing to India because of such advancements in communication. Organizations in India can send the completed work to organizations in the US for reviewing many times and work can go back and forth with ease. This is yet another reason why job outsourcing to India has become an ideal choice for outsourcers. QuicSolv employs high-end technology to ensure constant and undisturbed communication with our global customers. At Outsource2india, throughout the course of a project we constantly communicate with our customer over phone, e-mail, video conferencing and chat. We ensure that the communication between our customer and our personnel is fast and easy.

2. The Advent of Globalization

Globalization brought along with it several factors such as, lower costs of communication, transportation and production. Globalization has also broken down barriers such as, trade barriers, cultural barriers, language barriers etc. With the coming of globalization, the relationship between countries has improved and the world has become a much smaller place with no boundaries and no distinction between countries. With the advantages that globalization has brought in, job outsourcing has been on the rise.

When you outsource your services to QuicSolv, you will find no language barriers. All our personnel have an excellent command over English. Outsource to QuicSolv and feel the difference.

3. Time Zone Advantages

Earlier the distance between countries was a barrier, but today this distance has become an advantage! India, for example has a different time zone when compared to US and Europe. This has also increased the volume of job outsourcing to India. For India, this is a major advantage as jobs sent during the evening in the US can be completed in India during the day and sent back to the US. This has increased delivery time and organizations in the US are happy about this. The time zone advantage between India and US has increased job outsourcing to India.

Since Outsource2india is located in India, you can greatly benefit from the time zone advantage of India. Outsource your services to QuicSolv and benefit from India's time zone advantage.

4. The "New" India

With this excessive of job outsourcing to India, India has emerged as a new nation regarding the following factors which earlier crippled India's growth in business. With democracy, support from the government, more freedom for businesses, fewer restrictions and regulations, lesser interest rates and fewer restrictions concerning outsourcing, India has become a more ideal place for job outsourcing.

5. Human Resources

Before outsourcing, India's large population was a major disadvantage to the country's growth. But with the coming of outsourcing, it has proved to be a boon to India. The people in India are satisfied to work for lesser salaries and what people earn from the outsourcing industry is much higher than what they will earn elsewhere. The large number of human resources has enabled India cater to even large volumes of job outsourcing. India can thus meet any need that job outsourcing offers with its readily available human resources. India's human resources are skilled, professional, highly-educated and talented. This advantage of India has attracted a lot of job outsourcing in the recent years.

Here at Outsource2india, we hire only the best. Our personnel are highly educated and are well-trained in using the latest software and technology. Outsource to QuicSolv and benefit from our professional and competent services.

6. The "English" Advantage

India has the highest number of English speakers among other developing countries. In India, English is taught in schools and Indians start conversing in English right from school. This has proved to be advantage to India, because with the coming of outsourcing, and the internet as the medium, Indians could readily cater to the outsourcing industry because of their fluency in English. In most English-medium schools in India, students study other foreign languages such as French, German, Spanish etc. This advantage over the English language has set India apart from other countries.

Outsource to QuicSolv

Outsource2india offers call center services , data entry services , engineering services , financial services , creative services , web analytics services , healthcare services , photo editing services , software development , Research and Analysis services and a host of other additional services .

Outsource to QuicSolv for proficient services at a cost-effective price!

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High Quality in the Indian Outsourcing Industry

Outsourcing to India is now more about high quality rather than cost. Indian companies are fast scaling up to match or surpass international quality standards and are ensuring that they stay ahead through stable quality systems and continuous quality improvement.

The Indian BPO industry, which previously relied on its cost effectiveness to attract customers, is now under an entirely different dictatorship. Quality is the new buzzword and is dominating business processes and services like never before. Ninety percent of ITES-BPO companies now have specialized quality departments that are responsible for ensuring accurate, reliable services to their customers. The spotlight in Indian centers is now focused on ensuring standards of quality that are at par with, if not superior to their counterparts abroad.

Outsource2india (QuicSolv) is a pioneer in outsourcing since 1999. At Outsource2india, we have stringent quality control processes in place to ensure high-quality throughout the course of a project. QuicSolv offers high-quality services at a cost-effective price. Outsource to QuicSolv and benefit from our competent, yet cost-effective services.

Defining Quality

Quality departments have a straightforward approach to identifying the areas that require quality control. The first step is the identification of parameters that are 'critical to quality'. These parameters are almost always included in the client's requirements and expectations. Other key factors like accuracy, productivity and turnaround time are also outlined.

Most companies are now also following the process approach. The process approach is a description of the linkages between all the activities that work towards meeting the finest quality standards that have been identified by prevalent quality norms and the client's expectations.

At Outsource2india, we ensure that our services are of supreme quality. Outsource to QuicSolv and get access to accurate, competent and productive services at a quick turnaround time.

The Indian Advantage

The Indian advantage lies primarily in the educational and technical qualifications of the personnel, who are often more qualified than the people working in the parent locations. A survey conducted in 2002 by NASSCOM (National Association of Software and Service Companies) showed that an India based ITES-BPO center in the banking and financial service sector, performs better than a UK or US based facility on significant factors such as the number of correct transactions/total umber of transactions, total satisfaction factor, number of transactions per hour and the average speed of answers.

The ITES-BPO industries are most sensitive to incorporating internationally accepted standards of quality assurance. The NASSCOM survey also found that 50 percent of Indian companies have implemented varied levels of ISO (The International Organization for Standardization, which conceives sets of quality management standards) such as ISO 9002, ISO 9001, ISO 9001:2000, ISO 9001:2001.

The survey also says that 45 percent of Indian service providers have certifications like Six Sigma (a disciplined, statistical quality control method that measures the number of defects compared to the opportunities to make defects) and CMMI (Capability Maturity Model Integration - which is a process improvement method that provides a set of best practices that address productivity, performance, costs, and customer satisfaction.). Moreover, a lot of organizations are upgrading their quality standards to from the ISE 9000 to the new ISO 9000:2000, and from the CMM framework to the new CMMI framework.

Outsource2india hires only the best. Our personnel are highly educated and well trained in using the latest software and technologies available in the market. We have international quality assurance processes. We are an organization who also follows six sigma processes. Outsource to QuicSolv and experience increased productivity .

Quality Lapses - People and Industries

Despite superior performance levels and accreditation from international bodies, India still remains at a disadvantage when it comes to certifications for quality professionals. There are little or no certifications for quality professionals in India, and those that are available are either US or UK based. Although most companies make their employees undergo the processes for these certifications, the lack of an indigenous certification body is being felt, especially due to the scarcity of training centres for quality assurance and control. The only two popular certifications in the ITES industry are the 'Certified Software Quality Analyst (CSQA) and the Certified Software Test Engineer (CSTE). Both these certifications are offered by the Quality Assurance Institute, which is again, an international body. But these too are largely considered inadequate by most authorities.

Another major problem concerning industries like the customer contact center industry which relies on verbal one-on-one communication, is the use of incorrect accents and grammar. Quality lapses are felt strongly because of misunderstandings or the customer's inability to understand Indian accents. Efforts are being made to improve the quality standards in these areas by deploying specific bodies that evaluate prospective employees on English speaking abilities such as accent, grammar, fluency and overall communication skills. The international standard in contact center operations - the COPC certification is now in great demand among Indian contact centres. While six of the top 25 players already have COPC certifications, 12 more companies are in the process of being certified.

Efforts towards Improving Quality

The frenetic pace, with which Indian players are moving towards achieving internationally recognized quality control standards, largely arises out of the awareness that the BPO industries cannot sustain themselves on the advantages of lower costs and English speaking abilities alone. The importance of consistency, low error rates and customer satisfaction has never been felt as strongly as right now.

Naturally, governing bodies like NASSCOM are holding no bars in its efforts to improve quality regulation. By the end of 2004, it plans to introduce a common certification programme across India for aspiring candidates, in terms of the skills and knowledge required by the BPO industry.

Another significant move towards ensuring quality is NASSCOM's initiative towards controlling issues like copyright infringement. It plans to formulate a comprehensive draft proposal to ensure information security and data privacy. The proposal will also emphasize the need for internal checks and continuous quality reviews, both by the internal senior management team as well as by the client team.

NASSCOM also plans to create a common yardstick for BPO organizations. Attempts to create such a yardstick are being made by Carnegie Mellon University which is involved in developing E-SCM or the E-Services Capability Model. This model is extremely useful for customers who are selecting a suitable service provider, as it allows them to compare the capabilities of different service providers, and also compare issues associated with the initiation and completion of the project.

The concept of benchmarking is also beginning to be used more regularly. Benchmarking is a continuous process of assessing and comparing an organization's performance with a recognized industry leader. This is especially useful in knowing where a particular company stands in relation to its competitors. It also makes it easier to identify which areas need more attention in terms of quality control.

The Quality Assurance Institute holds various training programmes in Six Sigma, COPC Implementation and Support and non-certified skills like maintaining customer satisfaction, people management, service levels and transaction monitoring.

For a company, ignoring quality now means certain extinction. Quality therefore, is no longer an option, it is the only choice.

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Outsource BPO Services to India

Outsourcing BPO Services to India is one of the popular business practices in today's competitive environment. The Indian BPO industry is constantly growing.

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Outsourcing BPO - The Benefits

British Trade and Industry Secretary, Patricia Hewitt, at a national conference of the Confederation of British Industry (CBI) said, "It is much easier to see the short term benefits of protectionism than to see the long term costs to consumers and business competitiveness."

This is the crux of the pro-outsourcing argument. Outsourcing BPO Services to India offers benefits not only in terms of cost reduction, but also in terms of increased productivity and quality. Companies along with their customers benefit since they can access some of the best talent and expertise in the industry at lower rates.

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Outsourcing BPO to India - The Cost Savings

Bob Beauchamp, BMC Software President and CEO talked about the backlash in the US where an economic rebound had not created jobs. Addressing the Product and Embedded Software Summit in Bangalore he said that there may be a backlash, "But as studies have indicated that for every one dollar invested in India, the value derived by the US economy is between $12-14." He termed outsourcing to India as "irreversible" and said it was a "must have" to improve the Indian and global economy.

NASSCOM has tried to address some of the concerns voiced by anti-outsourcing parties especially about the benefits to the American economy.

The study shows that US businesses have witnessed significant cost savings by offshoring to India.

• The US banking, financial services and insurance (BFSI) sector's costs are 7-10% lower than that of its European counterparts
• American BFSI companies have saved $6 billion in the last four years by offshoring to India.

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Outsourcing BPO to India - Creates Jobs

It seems contradictory to say that the migration of jobs from one country to another actually creates jobs in the former. However, that can ultimately be the case. According to the NASSCOM report, the BFSI sector have saved $6 billion in the last few years and due to these savings have added 125,000 new jobs in this period thus preventing layoffs.

Nearly 170 Indian IT companies have offices in the US and they employed nearly 60,000 people in the US in 2001. These people paid nearly $810 million in taxes in 2001. Employees of Indian IT firms bought goods and services worth $1.2 billion in the US and paid nearly $300 million as social security in 2001.

Outsourcing BPO to India - The Value Addition

The NASSCOM study continues to explain the added benefits. BFSI offshoring has resulted in quality and productivity gains of 15-20% and customer satisfaction of almost 85%.

The report gives a striking example of the success of the automobile industry in the US due to outsourcing. Today, this industry is the largest in the world and two of the biggest automobile companies are American. The industry has the same number of professionals it did in 1994 as it did in 1974, which is 900,000. Over this same period sales and services in this sector grew 20% from 2 million to 2.4 million. Outsourcing gave this industry a competitive edge and opened up opportunities in terms of investing in new equipment and re-engineering processes.

The US steel industry, however, resisted outsourcing and suffered greatly despite several tariffs and quotas.

Outsourcing BPO to India - The Long Term Benefits

Amidst the mounting furor against outsourcing one has to examine things more objectively. In the short term, cost benefits and value addition may not be apparent because of the initial investment involved in training and infrastructure. Also outcries against migration of jobs seem to cement the argument. However, as the NASSCOM report shows, the long term benefits are very powerful. Not only does outsourcing BPO to India allow global companies to avail of some of the best talent and expertise at competitive rates, but it also allows the company to actually save several jobs, which it might have had to lay off otherwise.

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Business process outsourcing - BPO India

Business process outsourcing or BPO in India has evolved from its early 'sweat-shop' image to the status of a strategic differentiator in the global marketplace. Business process outsourcing has changed the way the world does business.

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What is BPO?

BPO is the contracting of a business task to a third party service provider. Back-office outsourcing refers to internal business functions like billing or purchasing, while front-office outsourcing includes customer-related services such as technical support, marketing and customer service. The focus in BPO is on reducing transaction costs, optimizing process efficiency and providing size and scale to handle a large volume of transaction processing engagements.

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BPO: so what's new?

BPO is as old as business itself. Businesses have outsourced their distribution or marketing to third parties for centuries. It is the opening up of the global economy that has catalyzed the growth of BPO to its present stature as a key driver of business competitiveness.

The roadmap for outsourcing success has been laid with:

• Quality processes
• Scalability
• Integration of global markets
• Seamless global delivery of work across borders through the internet

BPO by any other name

Today Business Process Outsourcing is known by many other names, among the popular marketing terms being: sourcing, global outsourcing , right sourcing, rightshoring, nearshoring , bestshoring, offshoring . Whatever the business world chooses to call it, business process outsourcing is a proven management strategy helping businesses survive and thrive in the boundary-less global economy.

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India - the world's preferred BPO destination

India has won its spurs as the world's outsourcing destination of choice. Currently the country has a commanding share of the global outsourcing market.

The Union Communications and Information Technology Ministry in India states that the Indian IT-BPO sector is likely to achieve a target of USD 60 billion in export revenues by 2010.

Services outsourced to India include the functions within administrative support, inbound call center services , technical support , document processing , financial and accounting Services , intellectual property research and documentation, supply chain management, legal services, regulatory compliance documentation , medical transcription , payroll processing services , sales and marketing, publishing, research and analysis , security, infrastructure and facilities management, human resource management and training. the list goes on.

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Evolution of the BPO industry in India

India's BPO industry has evolved and matured to present higher-end services that require judgment-based analysis and domain expertise, rather than function-specific, rules-based performance parameters alone. As service providers strive to offer end-to-end services, we see BPO falling into different segments. At one end of the spectrum is the traditional rules-based transactional outsourcing; while at the other end is judgment-based transaction processing and full-service business process outsourcing.

India has competencies in all the segments. Some BPO service providers have developed vendor-centric business models where they offer specialized services under one roof by representing the services of multiple specializing in different verticals. Others are niche players that have adopted vertical-specific models to address the needs of a specific industry, such as healthcare or insurance .

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BPO horizontals and verticals

BPO horizontals are function-specific and could spread across different industry domains. Payroll processing services , data processing services and tax solutions are examples of horizontal BPO.

Vertical BPO concentrates on functional services in specific industry domains such as manufacturing, retail, financial services and healthcare .

Captive and third-party players

Captive Offshore Delivery Centers or CODCs in India have been pioneered by large multinational companies (MNCs) like GE Capital and British Airways, Dell and American Express among others to maintain control and ownership over core or mission-critical outsourced business process as well as over proprietary or competitive knowledge.

Third-party outsourcing service providers give captives a run for their money as they offer the advantages of lower costs, flexibility and competitive pricing while maintaining quality standards.

BPO business models

The BPO industry features five business models:

1. The global delivery model - also called blended outsourcing, combines onsite, offsite, onshore, and offshore resources. Large multinational outsourcing service providers offer this model where work can be "bestshored" or "multishored" to the location where optimal cost and labor efficiencies are met to predetermined performance standards. In case of a disaster in a particular region, work can be immediately transferred to another region to ensure on-going, interruption-free business processes.
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2. The hybrid model or dual-shore model leverages onsite-offshore efficiencies to delivers results to clients at reduced costs. Clients are involved in the process as the Global team of the offshore vendor works onsite alongside the client's team to perform around 20% of the work while the Local team executes 80% of the work offshore to leverage the cost, labor and time-zone advantages of outsourcing.
   
   
3. The offshore multi-sourcing model or hub-and-spoke model uses multiple offshore suppliers to offset the risk of a single monopoly supplier. Users of this model typically have their own offshore operations, plus three or more partner outsourcing vendors with whom they collaborate. The partners get first-hand training on how the outsourcing company operates its hub center, and then apply their learning at the spoke centers.
   
   
4. The build-operate-transfer or BOT model
   The client partners with an offshore company to set up and operate a foreign outsourcing subsidiary with the option to transfer ownership back to the client company after a specified time period. The risks of setting up an outsourcing subsidiary in a foreign country are completely borne by the partner company which takes care of the costs and ownership of the new venture until such time as the client chooses to take it over.
   
   
5. The global shared services model
   Global shared services centers, also called offshore insourcing or captive centers create huge service enters from the company's internal service operations resources. They also have assured markets for their services. These centers can be run as independent businesses and have the advantages of a similar corporate culture, with less of the control issues that third-party BPOs face.

The differentiator: adding value

Indian BPOs are moving up the value chain to offer higher-end services, end-to-end business process outsourcing and domain-specific expertise. This has given rise to segments like Research and Analysis outsourcing , LPO (legal process outsourcing) ESO ( Engineering Services Outsourcing ), HRO ( Human Resource Outsourcing ), RPO (Research Process Outsourcing), MBPO ( Medical Business Process Outsourcing ), FAO ( Finance and Accounts Outsourcing ) and more. The list will only get longer as outsourcing service providers get more specialized in their offerings.

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Strategic BPO

Forward-looking global companies are using BPO in India as a business strategy to effectively meet critical business challenges. Moving beyond commodity BPO services and support functions such as voiced-based services and F&A support, BPO providers in India are offering a slew of high-end business services to accelerate innovation and provide sustained value. These include complex functions such as engineering design, equity research support, and pharma research.

Indian BPOs now assume full process management responsibility in processes like revenue cycle management , to provide greater value in business verticals like healthcare and BFSI (banking, financial services and insurance). This results in Business Transformation Outsourcing or BTO - a strategic partnership between the customer and the outsourcing service provider with sophisticated financing methods in place. The customer's firm acquires strategic stakes in the outsourced operations, thus sharing risks and gains with the outsourcing service provider and creating increased business worth for both partners.

Read more about strategic outsourcing that enables companies to achieve their enterprise-wide strategic goals and focus on core competencies.

BPO vendors are using Business Intelligence (BI) to add value and achieve sustainable business process improvement - to track and analyze trends and changes, to trigger appropriate management action through alerts, to deliver targeted, on-time information, to increase revenues, to retain customers, to reduce risks, to improve employee efficiency and productivity, to exceed SLAs, to optimize processes, uncover new opportunities and help the business grow.

Objectives of Business Process Outsourcing

Companies that offshore their business processes to India are no longer looking at cost reduction alone. They typically want to achieve:

1. Process improvement and efficiency - faster turnaround and greater productivity
2. Cost savings
3. Reduced head count
4. Improved quality - less errors/rework
5. Building/strengthening presence in a new market/foreign country
6. Increased focus on core competencies - e.g. developing new products or services
7. Building business value and strategic differentiation

All of the above add up to help these companies achieve increased competitiveness through BPO.

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BPO buyer-supplier trends: working towards 'win-win'

Buyers and providers of outsourcing services are using sophisticated financial mechanisms and business intelligence among other methods to achieve their outsourcing business objectives. Both parties want to minimize risks, increase operational efficiencies and boost revenues. An integrated approach helps achieve win-win solutions.

Buy-side

• Client-vendor relationships have matured to a collaborative, partnership approach to offshoring
• When it comes to negotiating deals, clients prefer the BOT model (Build-Operate-Transfer) as it mitigates risks and has a greater level of client control. Service providers too get a higher level of profit margins
• Stringent SLAs specifying performance levels
• Exit clauses citing weak governance, infrastructure or security issues are some of the ways that clients seek to cover risks
• A shift from buying commodity services to complete business solutions and better ways of doing things

Sell-side

• Change management - cultural orientation, communication, transition process, transparency, retention strategies for key personnel
• Geographic expansion
  - Adding new infrastructure in Tier II cities in India, to attract new talent and achieve lower attrition rates
  - Partnering with companies in other countries to provide nearshoring/multi-shoring options
• A shift away from fixed-price models, as service providers offer bundled services or move towards higher-end strategic processes. Thus a shift in focus from reducing costs to providing greater business value.
• Greater focus on industry verticals and domain expertise (judgment-based services) rather than function-specific, volume-driven processes driven by business rules.
• Greater cost control and cost reduction through efficient capacity utilization, cost planning and training

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Outsourcing BPO Services to Outsource2india

At QuicSolv, we provide high-quality BPO services that can tremendously increase your ROI, while reducing your operating costs. You can also benefit from the skills, knowledge and experience of our professional teams. Outsourcing can help your organization concentrate more on your core business functions and you can save on time, effort, manpower and infrastructure. Outsource to QuicSolv and increase your business value.

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Bangalore - Investment Hub

Bangalore possesses much of the attraction of other cities in India for the BPO sector; talented resources, good educational institutions, a large English speaking population, and technological prowess. However, it is a proactive state government that makes constant efforts to facilitate new investments, which gives Bangalore an edge over other Indian cities.

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Why Bangalore?

There are a number of reasons why Bangalore attracts a large number of ITES and BPO customers. Moderate climate, good labor relations, excellent education and research institutions, good telecom connectivity, advanced infrastructure, better state policy and investor perception are just some of these reasons. In a survey conducted by KPMG and NASSCOM, ITES customers were more attracted to a place if there was a proactive government who had the ability and willingness to facilitate new investments.

Bangalore scored over all other Indian cities in the survey in terms of human resources, policy support and nature of work. The city is the capital of the state of Karnataka and ever since Bangalore began to show potential for being an IT hub, the state government has gone all the way to push it to the top.

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Providing Incentives

Software Technology Parks of India (STPI), Bangalore is a society under the Ministry of Information Technology, Government of India. Companies registered under the Software Technology Park scheme obtain several benefits like:

• 100% foreign equity allowed
• Corporate income tax exemption up to 90%
• Duty free imports
• Dedicated data communication links
• Custom bonding and export certification provided at a single point

Improving Infrastructure and Telecom Facilities

Creating Software Parks: The number of companies flocking to Bangalore are on the rise. Observing this increase, the government decided to create spaces which would help to cut down on travel time and reduce the strain on the infrastructure in the city. The International Technology Park, Electronics City for the electronics industry, the Export Promotion Industrial Park for export oriented businesses, and the IT Corridor project which will cater to knowledge based industries, are all designed as self sufficient units with excellent infrastructure and state of the art facilities.

International Airport: Bangalore has more than 1000 technology firms. With the large volumes of international traffic to the city, the construction of a $245 million, 4,300 acre international airport is underway. It will be able to handle 4-4.5 million passengers and 130,000 tons of cargo. International traffic is expected to constitute about 1 million passengers out of a total of 4 million passengers projected to use the airport. The government hopes that this will become the regional hub for Asia and generate 1000 jobs per million passengers.

Telecom Facilities: There are a wide range of choices in the telecom sector. The entire state is networked via Optic Fibre Cables(OFC) by the state run BSNL as well as private companies like Bharthi, TATA, VSNL and Reliance.

Bangalore is connected to the major submarine cables cables viz., India-UAE ; SEA-ME-WE-2 ; FLAG ; SEA-ME-WE-3 through Mumbai ; SAFE and SEA-ME-WE-3 through Cochin and i2i SINGTEL through Chennai which is a joint Televenture of Bharati Telecom. The i2i submarine cable has 8.6 terra byte capacity.

There is also excellent International bandwidth via satellite. The STPI, Bangalore, provides more than 1050 IT companies, who are its customers, with Individual Satellite Connectivity. STPI Bangalore accounts for 45% of the total STPI revenues in India.

Promoting Quality

The state government constantly encourages the development of Small and Medium Enterprises(SMEs). A large amount of funds is put aside for technological up gradation. Also SMEs in the BPO sector are urged to obtain ISO 9000, ISO 14000, and similar international certifications to promote quality. The government provides assistance by meeting 50 percent of the cost of obtaining such certification, subject to a ceiling of Rs 75,000 per industry.

Expanding the Technological Hub

Bangalore is home to a thriving IT industry, but the state government has decided to encourage activity in other parts of Karnataka as well. In 1999, STPI established earth stations in Mysore and Manipal. In 2002, a software technology park was inaugurated at Hubli. Non metro cities like Mangalore, Hubli, Mysore, and Gulbarga have great potential as they have excellent educational institutions, good connectivity and infrastructure.

The state government is constantly exploring new ways of encouraging investment in the BPO sector and ensuring that the potential for job creation is fairly distributed across the state.

Outsourcing to QuicSolv

At Outsource2india, we provide cost-effective services without compromising on quality. Outsourcing can give you access to specialized services. Our professional, trained, skilled and knowledgeable team can provide services which can increase your productivity and at the same time reduce your expenses. Outsource to QuicSolv to increase your business value and maximize your revenue.

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High Rise Bangalore

Bangalore is attracting a vast number of global corporations with its world class facilities and infrastructure. The city is the IT capital of India and has made immense progress in the BPO sector. It is no surprise that almost a 100 multi national companies from all over the world have set up facilities in Bangalore.

In March 2004, a group of American management students took a tour of Bangalore and were extremely impressed with a call center facility they visited. Far from the image they had of "sweatshops" and crammed spaces, the vast work space with attractive design elements made them comment that these offices were as good if not better than some of the work places in the US.

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It is no wonder then that global corporations like HSBC, Dell, Microsoft, GE, Hewlett Packard, and several Indian multi national firms like Infosys Technologies, Wipro, and Microland have offices in the city. With the number of companies flocking to Bangalore on the rise, there is constant demand for world class facilities and state of the art infrastructure. Colliers International has said India continues to be a preferred destination for setting up back-office operations and for outsourcing similar work to BPO players, with the IT/ITeS sector being the main demand driver for commercial space in 2003.

Bangalore has good infrastructure, with large floor space and great telecom facilities. With a huge number of IT/ITES companies, R&D and product development facilities, and call centers mushrooming the demand for commercial space has risen drastically. These companies want the best space, with high ceiling heights, good broadband connectivity and areas of around 40,000 to 50,000 square feet.

There are a number of private sector companies who can cater to these demands by providing state of the art facilities. RMZ Corporation, Embassy, Prestige, IBS, Brigade, and Larsen & Toubro are some of the Indian players who have established a reputation for quality control and exceptional project planning skills. For example, HSBC's 180,000 square feet facility was conceptualized, designed, and executed in just 135 days. This HSBC center is not only the largest in India, but is also the best in terms of World Standard Technology.

Software Parks

Software Technology Parks of India (STPI), Bangalore is a society under the Ministry of Information Technology, Government of India. Under the STP scheme, which was formulated in 1990, there is a promotion and facilitation of software exports from India. It offers new fiscal incentives, state of the art infrastructure and encourages investment.

Various world class IT Parks have been established in Bangalore.

The International Technology Park was established in 1997. It was a joint project for the State Government, the TATA Group and the Singapore Consortium. This park has world class infrastructure and is built adhering to international standards. It includes office, production, commercial, residential, and recreational needs at a single location. With a sophisticated design, ITPL is built to suit the requirements of international hi-tech companies in the field of information technology, software development, electronics, telecommunication, research and development, financial services and other such industries.

Electronics City is an industrial park spread over 330 acres which is meant exclusively for the electronics industry. It has more than a hundred industries including Motorola, Infosys, Siemens, ITI, and Wipro.

Export Promotion Industrial Park is an area of 288 acres exclusively for export oriented businesses. The park is situated near the International Technology Park and has excellent facilities with water, electricity, and communication. GE has its India Technology Center located at this park and employs hundreds of multi disciplinary technology development activities.

Along with these parks there is also the IT Corridor project and independent office buildings that are a true illustration of the state of the art facilities available in the city.

The IT Corridor project was initiated by the Department of IT and the Bangalore Development Authority. Conceptualized by Singapore's Jurong Town Corporation Private Ltd, the huge expanse of 8000 hectares will provide state of the art facilities for the development of knowledge based industries.

I Flex Solutions recently inaugurated their new development facility which will accommodate 1500 employees and has two wings comprising of the development and corporate blocks. The latter block is designed and executed as a cable stayed structure, the only one of its kind in the whole of South East Asia. The unique design eliminates columns inside the building, which provides greater space inside. The development block will house the product development and support infrastructure.

These various examples of the quality of facilities available in Bangalore, from innovative and state of the art designs as well as good infrastructure, are major reasons why Bangalore continues to dominate the outsourcing industry in India.

Outsourcing to Outsource2india

QuicSolv offers high-quality and cost-effective services that can tremendously increase your productivity. Outsource to QuicSolv to experience an increase in your revenue and a reduction in your operating costs.

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Intellectual Property Outsourcing
Advantage: INDIA

Intellectual property (IP) refers to creations of the mind: inventions, literary and artistic works, symbols, names, images and designs used in commerce. IP plays an important role in an increasingly broad range of areas, ranging from the internet to healthcare to nearly all aspects of science and technology, law, literature and the arts. Understanding the role of intellectual property in these areas - many of them still emerging - often requires significant new research and study.

No person or for that matter no business organization is an island unto itself. No business enterprise is capable enough to perform all its activities by itself. It has to depend upon some other entities for some of its functions. Assigning some of its activities by a business to others is by general definition called outsourcing. Companies take a step back, look at what their competencies are and are not, and if they find some are deficient, they contract an outside business whose expertise covers those aspects.

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With a realization that they can't be all things to all people, service organizations like Intellectual Property practitioners, lawyers, physicians, surgeons, dentists, clinical laboratories, hospitals are relying on service providers to manage critical but non-core processes for them. By doing so they are able to focus more on their core competencies. It is in fact essential for them to do so as these professionals are generally operating with skeleton staff strength and for the sake of profitability are not in a position to maintain large work force.

Outsourcing of support functions like search, analysis, proof reading, reminders to the customers, pay roll, drafting and editing of documents, maintaining personal records of customers, research and development (R&D) et al allows them to focus on their core competencies and remain profitable. It won't be wrong to say that in 10-15 years from now, service organizations may be outsourcing all work that is "support" rather than revenue producing to keep themselves afloat.

The management needs to look at the business from a strategy perspective. Without these aspects taking up personnel and time, they could focus their capital and energy on other areas. Outsourcing has many benefits, including the fact that the outsourcer's job is to devote its resources to this one aspect of a business, be it financial or legal, etc. In general, this would mean that the service level would be higher. These outsourcers are providing a better service at a much lower cost than the company's costs in performing the function in house. Outsourcing gives these businesses the opportunity to provide much improved quality of service to their customers.

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Outsourcing of intellectual property functions is not a new phenomenon. For many years now, outsourcing of mainly support functions has become a major player in the business game of IP practitioner firms in the US. Despite the anti-outsourcing rhetoric, businesses must remain profitable in today's highly competitive global economic environment particularly when the IP practitioners and other professional service providers are operating on razor thin margins. Those firms that outsource some of their functions into other countries are reaping rewards and meeting the bottom-line goals.

In recent months Microsoft Corp. began using Indian professionals to search for prior art - written information about an invention - in preparation for filing patent applications. Other Fortune 500 companies, such as Oracle Corp., have considered it. And law firms, which often follow the lead of their customers on new initiatives, are finally catching on.

Outsourcing may be a dirty word for some people for political considerations. But in the real world - where costs and competitiveness matter - Intellectual Property Practitioners, medical practitioners as well as lawyers, like other professionals, have started to recognize the value of tapping into the highly educated, English-speaking Indian workforce to carry out tasks that would typically be performed by junior-level employees. Several outsourcing companies are courting the U.S. legal market, using Indian lawyers, scientists, and other trained professionals in cities like Hyderabad, Bangalore, and Noida. There are a few different emerging models. Vendors like Lexadigm Solutions and Lawwave.com rely exclusively on Indian lawyers to conduct low-level legal work and analysis. Others, like Office Tiger, use a mix of lawyers and trained professionals to handle legal and non-legal tasks such as managing conflicts databases and document management and review.

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Some law firms and legal departments have opened their own offices staffed by Indian employees, rather than outsourcing their work to a third-party vendor. This is called off- shoring. In 2001 General Electric Co. established a legal team in Gurgaon, India, with lawyers and paralegals who draft documents like contracts. Bickel & Brewer, a 34-lawyer Dallas litigation firm, opened a facility in Hyderabad, India, in 1995. Several hundred Indian employees - both lawyers and others - scan, code, index, and abstract documents. Bickel & Brewer's offshore practice has been so successful, says partner William Brewer, that the firm spun it off as a standalone company.

While cost might be the most obvious incentive for outsourcing all types of Intellectual Property work to India, a number of other motivating factors are cited. One is the 9-to-13-hour time difference between the United States and India, which gives U.S. major the sense of operating on a 24-hour-basis. "When I go home at six I can have them do the grunt work, research, and proofreading that I would otherwise have other people do," says Solan Schwab, a New York-based solo practitioner who out sources research projects like analyzing state-by-state insurance regulations with QuisLex, which has 12 lawyers in Hyderabad. "Then when I come to office in the morning, I receive a beautiful e-mail with research done exactly how I like it."

Schwab sees outsourcing as the answer to the age-old dilemma facing solo practitioners: an erratic work flow that doesn't justify the overhead of a full-time staff. He estimates that by outsourcing legal work, he spends about one-third to one-half of what he would spend on hiring a full-time associate.

IP Practitioners say that the financial incentive of outsourcing work is the factor that most impresses their customers. "None of my customers has opposed this because it saves them money," says Noah Henry Simpson, of Simpson, Woolley, McConachie of Dallas. "It probably saves them at least half of what they would usually pay." One would realize that outsourcing work to India is no different from outsourcing scanning and coding of litigation documents to a vendor or legal work to a temporary lawyer in your own country.

Outsourcing gives you:

• A technical and functional edge over your competitors - without capital investment
• Faster development and start up
• Lower cost
• Enhanced performance
• A better-managed e-business infrastructure
• Reliability
• Security
• A more effective operating environment at the backend

When to outsource?

• When you are too busy handling operations and are losing focus on your core business
• When you are facing a time, money and human resource crunch
• When you have a mission-critical project that needs all your time and energy, plus specialized skills which aren't readily available
• When you have got to be the first into the market to gain the edge

Where to outsource? India, of course!

Intel, IBM, Cisco, Yahoo, Amazon and Oracle find it works! Outsource to India for technological agility, quality, flexibility, cost control, time-to-market and competitive advantage. India is an important location and it is the only one in the developing world.

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India offers multiple advantages

1. India is a talent-rich country.
2. India exports software to 95 countries around the globe and has expertise in global methodologies.
3. India enjoys the confidence of global corporations. 82% of the US companies ranked India as their first choice for software outsourcing. Bill Gates says that India is an IT superpower. His Microsoft has struck strategic alliances with WIPRO and Infosys to develop applications on the .Net platform. Jack Welch has opened a $130 million Technology Center in Bangalore. GE's largest R&D center outside the US has celebrated 10 years of GE Medical Systems in India.
4. India has state-of-the-art technologies for total solutions. Offshore assignments have moved up the value chain - from data entry to large and complex turnkey projects.
5. The IT Act passed in 2000 brings E-commerce within the purview of law and provides for stringent punishments to "cyber criminals". With this, India has joined a select band of 12 nations that have cyber laws.
6. Software Technology Parks of India offer world-class infrastructure and various incentives and concessions to encourage foreign investment and promote software development in India e.g. 100% foreign equity is permitted and approved under the Automatic Route with tax holiday until 2010.

To top it, India has effectively provided efficient software solutions to Fortune 500 companies and there are many global corporations which are relying on software companies in India like Citibank, Morgan Stanley, Reebok, General Motors, Sony, Coca-Cola, Pepsi, Swissair, United Airlines, Philips et al.

It is not surprising that corporate giants in western countries like United States and Europe are increasingly looking to India for cost-effective and high-quality support solutions. In fact, a World Bank-funded study in the United States confirmed that vendors rated India as their number one choice for outsourcing. India has invested heavily in education and can provide a ready supply of bright people in all fields at a relatively low cost. A strong supply of high-quality talent, favorable government and tax incentives, and the ability to complement U.S. time zones with a virtual around-the-clock approach are some of the advantages India has to offer.

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Business Opportunities in India - Tax and Legal Issues

While looking at the prospect of doing business in India it would be prudent to see what options are available to a Non Indian company to invest in India. Since 1991 India has undergone a sea of change in its outlook toward foreign investment and global collaboration. Add to that the phenomenon called Internet and you really have an explosive combination. It's no wonder that software and Internet services have really led India's outward push.

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While most of the policies are not specific to any industry, there are special provisions that relate only to the IT industry. Once you have decided to invest in India, the next question is naturally, how do I set up operations? There are primarily 2 ways to get your work done.

1. Having your own setup
2. Outsource the work to a local company

1. Having your own setup

Many foreign investors prefer to have their own setup in India. This gives them better control over management of the organization. It is also the best guarantee that the company's processes are being followed. Furthermore this may in some cases tend to be preferable, especially if the volume of work is large or the work is sensitive in nature. However there are also disadvantages in this approach. One is regarding flexibility. Often these branches or subsidiaries are bound by the policies of the parent company and this may make it unwieldy when it comes to Indian legal and cultural framework. Secondly, management of a remote setup is always more difficult, especially if the work involved is intermittent and small in volume.

Basically there are four types of direct foreign investment businesses in India:

1. Branch Office
2. 100% Subsidiary
3. Joint Venture Companies
4. Acquiring Existing Indian companies

a. Branch office:

It's really simple to set up a branch office in India. You are allowed to open a branch office if you are engaged in manufacturing or trading for the following activities:

• To represent your company in various matters in India e.g., acting as buying/selling agents in India, etc.
• To conduct research work in which the parent company is engaged provided the results of the research work are made available to the Indian companies
• To undertake export and import trading activities
• To promote the possible technical and financial collaborations between the Indian companies and overseas companies

Under this setup, you will not be allowed to do any sales in India for any of your products or services. However if you are only looking at doing your software development or IT enabled services, then this is the easiest option. For this you need to fill up Form FNC -12 to the address given below:

The Controller
Exchange Control Department
Reserve Bank of India, Foreign Investment Division
Central Office, Central Office Building, 11th Floor
Bombay - 400 023.
Any Chartered accountant in India will be able to source you this form.

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b. Wholly Owned Companies (100% Subsidiary)

If you would like to hand over control to the local management or would like to sell your products in India then look at this option. For the software industry, the Government of India allows up to 100% ownership by the Foreign Investor. Also, if you were to set up your office in an Export Processing Zone (EPZ), Software Technology Park (STP) or Electronic Hardware Technology Park (EHTP), then you will automatically be given permission for 100% ownership. The catch though is that you will have to export at least 75% of the final output out of India. Many of India's States have at least one of these Parks. Automatic approvals are given by the Secretariat for Industrial Approval for setting up 100% Export Oriented Units ("EOU"). These zones are designed to provide internationally competitive infrastructure facilities and duty-free and low cost environment. Various monetary and non-monetary incentives are granted which include import duty exemption, complete tax holiday, decentralized "single window clearance," etc.

Establishing units in EPZ or STPs have the following advantages:

• Duty Free imports
• Tax free income
• Readymade infrastructure
• Housing and living facilities (in some cases)

For setting up units under 100% Export Oriented Unit Scheme you must submit an application to:

The Secretariat for the Industrial Approvals (SIA)
Department of Industrial Development,
Udyog Bhawan, New Delhi - 110 001

For setting up units in EPZs, you can apply to the Development Commissioner of the concerned Export Processing Zone in 10 copies along with a crossed Demand Draft of Rs 2500/= (approx $60) drawn in favor of The Pay & Accounts Officer,

Department of Industrial Development,
Ministry of Industry,
and payable at the State Bank of India, Nirman Bhawan Branch, New Delhi.

c. Joint Venture Companies:

This is a common form of investment, because it allows the Foreign Investor and the Indian partner to do what each does best - the foreign partner brings in technology, systems and products and the Indian partner takes care of Human resources, marketing and legal and tax issues. This is a special favorite for foreign companies just moving into India, since it gives you the distribution channel to get sales moving quickly. However over the long term you may prefer to move to a 100% subsidiary, to establish greater control. This is commonly done by means of stock buyouts or fresh investments. Both Wholly owned Companies and Joint ventures may be registered as Private Limited Liability (Pvt. Ltd.) or Public Limited Liability (Public Ltd.). Currently the government allows 51% shareholding by foreign companies in all but a small list of companies (these companies are essential to India's national security).

d. Acquisition of existing Indian Companies

You have also the option of acquiring a company already existing in India. Such acquisition could take place through the issue of fresh capital and /or transfer of shares of an existing Indian company to the foreign investor with the effect of transferring control. Shares of an Indian company could be acquired from another foreign investor, subject to RBI approval. This will give you the advantage of a readymade setup. The Foreign Exchange Regulations Act (FERA) makes it necessary that Reserve Bank of India (India's Federal Reserve Bank) permission be taken prior to acquisition of shares in an Indian company by a foreign investor. Similar permission is required in case of transfer of shares from you to a person resident in India. Either the transferor or the transferee can apply for permission.. However be careful with this one. If the company is listed on the stock exchange, then you cannot hold more that 5% of the total paid up capital and all Foreign investors and Non Resident Indians (in case there's more than one) cannot own in total more than 24% of the capital.

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Corporate Tax and other Incentives:

The corporate income tax effective rate for domestic companies is 35% while the profits of branches in India of foreign companies are taxed at 45%. Companies incorporated in India (any setup other than a branch) even with 100% foreign ownership, are considered domestic companies under the Indian laws.

However, the New Export-Import Policy of 1992 provides substantial tax incentives for investments in Export. Major exporters are allowed to operate bank accounts abroad to facilitate trade. Companies that sell in the Indian market as well as international markets may deduct export earnings from their tax liabilities.

Exporters and other foreign exchange earners have been permitted to retain 25% of their foreign exchange earnings in foreign currency. For 100% Export Oriented Units and units in Export Processing Zones, Electronic Hardware Technology Parks, retention up to 50% is allowed.

Other incentives include:

• Tax holiday for a period of 5 continuous years in the first 8 years from the year of commencement of production
• Exemption from taxes on exports earnings even after the period of tax holiday
• Exemption from central and state taxes on production and sale
• Permission to install machinery on lease
• Freedom to borrow self-liquidating foreign currency loans at the prime rate of interest
• Inter-unit transfers of finished goods among exporting units

2. Outsourcing your work to India

The other option is to completely outsource your work to Indian companies. This has it's own advantages. For example

• For intermittent jobs, it may make better sense to pay only when you have work
• Also if the volume of work were small, it would always be difficult to achieve economy of scale
• Outsourcing ensures that while you may not be the best in a certain area, you are giving the work to someone who's really good at it. That leaves you to focus on what you do best
• Many Indian companies do a lot of business with International customers, so they would often be able to bring in expertise and advice from their earlier work
• Lastly but definitely not least, you have no legal hurdles to overcome when you outsource

Due to these benefits many Companies prefer to get their work outsourced, leaving you to do the things that directly impact your success.

What ever you decide, you can be assured that our international team would be happy to work with you in making your business succeed.

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Legal Issues in Offshore Outsourcing to India

With the rise in outsourcing and with more and more global organizations outsourcing business processes and IT services to India, there has been a number of legal issues in outsourcing. Companies outsourcing to India have to face some complex legal issues with outsourcing. If your organization is outsourcing to India, make sure that your organization is aware of the intellectual property protection and the data privacy and protection in India. Before outsourcing to India, also make sure that your organization knows about compliance with applicable Indian laws, enforcing contractual/legal rights in India and dispute resolution procedures.

There are several legal issues in offshore outsourcing and dealing with them effectively can help the organization who wishes to outsource and the outsourcing service provider, to face the legal issues of outsourcing. The following are some tips on efficiently dealing with the legal issues of offshore outsourcing.

1. Taxation

Offshore outsourcing is often influenced by several international and local issues. The taxation policy of India also has a big effect on the offshore outsourcing decision. Before outsourcing, find out about the tax implications that you have to deal with. This is an important legal aspect to deal with, because different countries have different tax laws. You can meet your outsourcing provider in India and decide about which tax provision would be appropriate in the legal contract.

2. Legal Systems that are Heterogeneous

When you outsource to India or any other country, you will discover that the rules of governance are different in different countries. In outsourcing, you and your outsourcing provider have to make sure to include two different legal systems. This heterogeneity in the legal system is an important legal issue with outsourcing that companies have to deal with. This problem exists, because there is no legal system which can be used globally. Different countries even have different intellectual property laws. Since there are no standard legal rules and regulations to follow, it is best to meet your outsourcing provider and make sure that you adhere to both the legal systems. This will help you to sort out any legal issues of outsourcing.

3. The Influence of Local Laws

Some countries have strict data protection and privacy laws, which might be a hindrance in outsourcing. In such cases, the outsourcing provider and the customer would be legally bound and share equal legal responsibilities. This might increase the liability of the customer and in some cases can become a legal issue in outsourcing. Outsourcing service providers also have to protect their business from civil penalties. Conduct some research on the country that you want to outsource to and if the local laws of that country are a hindrance, find another outsourcing service provider. The influence of local laws is another major legal issue in outsourcing.

4. Dispute Settlement

Dispute settlement is yet another legal issue with outsourcing. If a customer from U.S wants to sue an outsourcing provider in China, there would be plenty of disputes. The Chinese outsourcing provider would not want to go to the U.S and the U.S customer would not want to come to China. There is also the legal issue of where the case will be filed, as the case has to be fought in the country where the case is filed. These two countries would also have two different legal systems. When making a settlement contract with your outsourcing provider, ensure that you mention the system of dispute settlement. Clarifying the legal aspects in outsourcing and dealing with the problem of dispute settlement can avoid future problems.

Legal Issues in Outsourcing to India

1. Effective Changes in Indian Laws

India is the most idea place to outsource to. When you outsource to India, you need not face many legal issues in offshore outsourcing. There are many global organizations which have been outsourcing to India and these organizations have not faced any hindrance with the legal issues of outsourcing to India. Indian laws are always going through amendments and they are often changed to effectively meet the requirements of today and to be in unison with the latest international laws. India complies to the “agreement on trade related intellectual property right”. India also accepted the “world trade organization agreement” even when outsourcing was just starting. The Indian government has brought about many effective changes in patents, copyrights, designs, trademarks to meet the requirements of today. Such effective changes have transformed India’s intellectual property laws.

2. The Proper Law of Contract in India

When a legal contract has to be made between two countries, the legal regime of any single country becomes insufficient to deal with the situation. Outsourcing brings about two legal systems into the picture and this is where the private international law comes into place. Before you sign a legal contract with your outsourcing provider, make sure that you decide about which law would govern the legal contract. In India, the outsourcing service providers ensure that the “Proper Law of contract is applied, before a legal contract is signed.

3. Choice of Law is endorsed by Indian courts

The courts in India have always endorsed the choice of proper law. If you have expressed the choice of law in the legal contract, you can be sure that it will be supported in the Indian courts.

4. Freedom of choice to choose any law

When you outsource to India, you can choose the law that would govern the legal aspects of the contract. You can also decide which court would conduct the jurisdiction. The sections 13, 15 and 44A of the Indian Civil Procedure Code and Section 41 of the Indian Evidence Act, govern the conclusiveness and enforcement of foreign judgments made in India.

Guidelines to help you deal with the legal issues in offshore outsourcing to India

• If you choose arbitration as the means of dispute resolution, ensure that the place of arbitration and other important aspects are well defined in the legal contract
• If you choose the Indian law and if you want Indian judgment to be used in your country, then make sure that your country has a similar law as the Section 44A of the Indian Civil Procedure Code.
• In case, you sign the legal contract in a country, which is different from the country whose law you have chosen, make certain that the formal requirements of that place of contract are fulfilled.
• Make sure that the country whose law you choose supports the proper law for enforcement.
• Ensure that there is a choice of law which governs the legal contract.

Outsourcing to Outsource2india

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