In order to meet the growing international demand for lucrative, customer-interaction centers, many organizations worldwide are outsourcing these services from locations like India

1. Cost Reduction 
2. Increased Productivity 
3. quality

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." Companies along with their customers benefit since they can access some of the best talent and expertise in the industry at lower rates.

Business Process Outsourcing is the long-term contracting out of non-core business processes to an outside provider to help achieve increased shareholder value.

Availability of highly qualified skill pool and faster adoption of well-defined business processes leads to higher productivity gains without compromising on quality.

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 s avings 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.

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

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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