Continued focus on quality- Demonstrated process quality and expertise in service delivery has been a key factor driving India's sustained leadership in global service delivery. Since the inception of the industry in India, players within the country have been focusing on quality initiatives, to align themselves with international standards. Over the years, the industry has built robust processes and procedures to offer world class IT software and technology related services.

World class information security environment- Stakeholders of the Indian BPO companies recognise security as an indispensable element of global service delivery. Individual firm level efforts are complemented by a comprehensive policy framework established by the Indian authorities, which has built a strong foundation for an 'info-secure' environment in the country.

Business infrastructure- Rapid growth in key business infrastructure has ensured unhindered growth and expansion of this sector. The BPO sector has been a key beneficiary with the cost of international connectivity declining rapidly and service level improving significantly. The growth is taking place not only in existing urban centres but increasingly in satellite towns and smaller cities as well. Critical business infrastructure such as telecom and commercial real estate is well in place, improving other supporting infrastructure a key priority for the government. STPI (software technology parks of India) infrastructure available across the country and magnitude of investments shows government support to the industry.

Enabling Business policy and Regulatory environment- The enabling policy environment in India was instrumental in catalysing the early phases of growth in this sector. Policy makers in India have laid special emphasis on encouraging foreign participation in most sectors of the economy, recognising its importance not only as a source of financial capital but also as a facilitator of knowledge and technology transfer.

The Indian ITES-BPO sector has benefited from this approach, with participating firms enjoying minimal regulatory and policy restrictions along with a broad range of fiscal and procedural incentives. Outsourcing brings substantial benefits to the global economy, and the lion's share will likely go to the US economy.

Businesses can dramatically reduce costs and improve their competitive position and the economy can generate more output. As a result, outsourcing is likely to increase in volume by 30 to 40 per cent over the next five years. This will mean a loss of some 200,000 jobs a year in services over the next decade. Rather than shrink from this, the US policy and businesses need to reinforce the flexibility of the economy and soften the impact to those workers, who are likely to be affected by outsourcing. Given the large surplus generated from outsourcing activities, doing so is highly feasible. By doing so, they will help ensure their own competitive interests and America's and will create a win-win situation for the global economy.