Most outsourcing is possible only because it harnesses the power of information technology. With technology like terrestrial and satellite dedicated links, video-conferencing, online chats, e-mails and telephones, the whole dual-shore system works as a single virtual unit. Location is hardly relevant.

BPO service providers are moving beyond call centers and routine data-crunching toward high-end services.Many companies want to concentrate on product development, sales and marketing rather than devote energy and resources on the development and maintenance of complex IT infrastructure.

IT resource requirements are often a big headache for companies whose core competencies lie elsewhere. They want cost benefits and a visible return on investment. They also need software systems that can handle the sudden increase in web traffic, which they might encounter at different times.