The outsourcing business is one of the most popular and developing business sector. The outsourcing is seen everywhere and in every small and big service or product. Almost all countries have presently stepped in this field and are reaping high benefits from outsourcing market. The services and products are outsourced in large number, in India it would not be amazing to say that almost all companies placed here are involved in this business. The outsourcing industry is growing by each passing day as there is addition in some policy or a whole new company is added.The popularity in outsourcing business processes, particularly IT services with India as a favored destination, presents both outsourcing customers and providers with the challenge of fully complying with the regulations of all countries involved.

As companies shift work overseas, outsourcing is portrayed as a killer of good-paying U.S. jobs. But now executives are discovering how outsourcing can not only cut costs, but also boost quality and even create new types of jobs at home city only.

India is considered as a paradise for an outsourcer as the country has so much to offer and that too in the best quality. A study reveals that India has been ranked on the sixth position in the World telecom sectors with US$93.2 million telephone subscriptions by the F.Y. 2004, Indian telecom services are the fastest growing of all the telecom sectors in the world. Compared to the tele-density (telephones per 100 inhabitants) of China and the US (China has a tele-density of 51, while the US has 117), the Indian market provides a lot of potential with an estimated tele-density of 8.5 percent as registered in 2004, which analysts believe will reach a record-high in the next 5 years. The Indian telecommunication industry, therefore, offers an ideal setting for investment.

It is expected that the IT sector will show high growth and development. According to a May 2003 survey by CIO, 68 percent of the more than 100 IT executives who responded said their offshore contracts will increase this year. Only 30 percent foresaw no change.

Among the positive hopes of the outsourcing industry there is a hope that IT spending by India's industries will grow at a five-year compound annual growth rate of 14.8 percent, exceeding $36 billion by 2009. The communications, financial services and services industries will spend the most on IT.

India reported gains of 12.8 percent and 13.7 percent last year for positions in categories labeled "IT solution provider" and "software development," according to an annual Asia-Pacific survey of more than 500 companies by Hewitt Associates, an international business consultancy. The numbers, which reverse a six-year decline in pay raises in India, are far more than any increases reported among other nations surveyed.

The studies have proved that the outsourcing market has developed at a high pace and is still growing, while effecting the econonmy and growth positively. The expectations from the outsourcing indusrty is that it would take India to the highest podium of development in all fields.