It took one man to see the potential for India in shifting back-office functions from high wage to low wage economies. That man was Raman Roy, widely seen as the father of outsourcing in India. But while the industry has taken off in a way few could have predicted, there are challenges ahead for India, as competition increases, and wages in India itself are being pushed up.

IT WAS a revolution which started without a fanfare. A chartered accountant by the name of Raman Roy, who was working for American Express in India in the 1980s, suggested that some of the company’s back-office work could be spun off to an office in India.

Few could have predicted this would trigger a s...

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 Barun S. Mitra
The move abroad also reflects the biggest challenge – the scarcity of a skilled workforce, which is pushing the wages higher
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