Outsourcing Widens Geographical Coverage in India

The heavy demand for outsourced services may be more than what cities like Bangalore and Mumbai could handle. Which is why other cities in India are also making inroads towards making a killing while the outsourcing sunshine is shining.

According to a Financial Express report, about 19 other states in India have rolled out policies specific to IT and IT-enabled services - policies meant to attract outsourcing investors in setting up operations or expanding existing ones.

These policies are in the form of introduced regulatory and infrastructure-related incentives meant for American and European companies.

According to the director of the Software Technology Parks of India (STPI), a lot of Western companies are now moving beyond metropolitan areas like Bangalore and New Delhi to set up their IT services, call center and outsourcing operations in cities like Chandigarh and Pune, among others.

The demand is so great, apparently, it wouldn't hurt if other cities could attract some of the investments pouring into India these days.

According to STPI, in Mumbai, for example, one company sets up operations every third day.

The Indian government has recognised IT and IT-enabled services as thrust areas for the economy and has initiated policies which favor foreign investors. These include, to name a few, permitting 100 per cent foreign equity and exemption from corporate income tax till March 2009.

Now that state governments are independently initiating policies, it is making the economic affects of outsourcing happen at a wider scale, literally.