Over the last few years, BPO has had a significant impact on the way corporations run their operations. It is increasingly becoming the strategic choice of companies looking to achieve cost reductions while improving their service quality, increasing shareholder value and focusing on their core business capabilities. With its large pool of software professionals, India has a lot to offer in terms of value and significant cost benefits. With the inherent advantages available in India, companies are slowly realizing BPO in India is in fact a key driver of value, allowing companies to start new operations easily, tap new sources of revenue, make strategic moves etc.

The key challenges for organizations in the fiercely competitive market, is the focus on core business, with objectives such as rapid time to market new products and services ahead of competition and have the agility to transform and adapt in a rapidly changing environment

Access to technologies, systems and customers worldwide from any desktop was cost-prohibitive or impractical a few years ago. The latest advances in networking standards, bandwidth availability and Internet have made remote programming a reality. Many organizations, thus, look at outsourcing as a way to remain competitive via cutting costs, improving quality, and remaining focused on core competency.

Few years ago, global sourcing meant sourcing qualified software developers, architects and project managers from outside US to work onsite. Organisations searching for ways to reduce costs and maintain high productivity levels are increasingly looking beyond local boundaries for application development and maintenance support.