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• Offshoring is defined as movement of entire business functions done at a company in one country to another company in the same or other country.
• Advantages of offshoring:
• India's offshoring sector has been the largest and fastest growing in the world. It has played a major role in the country's overall economic growth.
• In 2008 itself, it generated 1,600,000 new jobs.
• It accounts for 7 percent of India's GDP.
• FDI in 2006-07 was $10 bil.
• It has boasted annual growth rates of nearly 30% in the past ten years, with revenues more than $50 billion
• Reasons for India to be chosen
• And it has a large supply of qualified talent in areas outside IT, such as R&D, finance and accounting, call centers, and back-office administration.
• India has one of the largest pools of low cost English speaking scientific and technical talent. India Produces 2.5 million graduates each year. It is 1.5 times the size of China's and almost twice that of the United States. As in other low-wage countries, however, only a fraction of these people are suited for work in multinational companies.
• India has the lowest labor cost for university-educated employees of the 16 potential offshore countries we studied (roughly 12 percent of the US cost).
• Companies have been able to save about 30 to 40 percent for most services by outsourcing processes to India. An excellent example of a company that has achieved cost savings by offshoring to India is General Electric (GE). After offshoring its BPO operations to India, GE found a reduction of 25 percent on its labor cost.
• India's graduates also work the longest hours—on average, 2,350 a year, as compared with 1,900 in the United States and 1,700 in Germany.


• Where India is lacking:
• India's vast supply of graduates is smaller than it seems once their suitability for employment by multinational companies is considered...