IT outsourcing to India

ITO is a company's outsourcing of computer or internet related work, succh as programming to other companies. It is used in reference to Business Porcess Outsourcing (BPO), which is the outsourcing of the work that doesn't require much of technical skills.

Reasons : Lack of resources, cost reduction etc.
There is a list of various companies which gives ITO to India. These are following:
1. Aceenture
2. IBM
3. Sodexo
4. Convergys

There are some reasons and benefits which are significant in ITO.
1. Human Resource:
Since India is a very populated country that's why companies can easily hire employees on low price with a good performance level. In developed countries like UK and US, main problem which arise is, Human resource. So companies like to outsource their work in developing countries like India, China.

2. Cost Efficiency:
ITO has a great advantage of cost efficiency. Since human resource is easy available, and most of them are keen to work, So they can be hired on a low price. With effects company's profits.

3. India guarantees standard, quality:
India guarantees the standard and quality like ISO and SEI-CMM. In India out of every 5 companies , 4 guarantee standards.

4. Good connectivity:
India is a growing up nation. Also we achieved a great position in IT sector too. So the connectivity with other countries , is very good here. Indians are very good with their English, So language problems doesn't create any barrier to them.

5. Gives employment:
There are so many companies which give employment to our people. In India unemployment is a very big problem, ITO helps in reducing this problem. Fresh graduates can easily placed in these companies.


There is always two sides of a coin.So, in-spite of so many advantages there are some disadvantages too. Economist says in ITO there is not always a "win win condition". There are some loo-poles also. These are following:

1. Lack of innovation:
Due to ITO people won't work in a innovative manner, because people know that there is a third party which provide them instructions to do work. Employees become responsible only to the work which is given to them by the third party.