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Outsourcing can be local or offshore. For instance, a firm based in the USA can choose to outsource their non-core activities to a group based in America. Or they can give this work to another group in an offshore location, be it India or China.
Thanks to effective services and solutions, at lower costs, offshore outsourcing is practically the norm. India is a very popular location for outsourcing
Offshore outsourcing leads to huge cost reductions, with most firms claiming between forty to fifty percent savings. But cost is not the only reason. Companies in China and Russia offer better rates. But there are more projects flowing into India because there is plenty of value addition, in terms of quality and time-to-market benefits.
The huge pool of talent and creativity in Indian BPOs has forced many firms to acknowledge that although they came to India for the cost factor, they stayed for the speed and quality. But recently, there has been an outcry against outsourcing to India, especially in the USA and UK. There are several debates raging in the media and some local governments have tried to control the Offshore outsourcing industry through legislation.
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