Over the last few years, India has emerged as a leading destination for companies wishing to outsource their software development, and business process requirements. International companies have either entered into contracts with Indian service companies or set up their own facilities through Joint Ventures and Indian subsidiaries.

Indian Government has been a catalyst in the growth of the Indian software and BPO industry through the tax incentives provided to exporters. These incentives are aimed largely at maximizing exports, thereby resulting in an inflow of foreign exchange into India. Industrial policy reforms have eliminated the licensing requirements except for certain select sectors, removed restrictions on investment and expansion and facilitated easy access to foreign technology and direct investment. This has contributed to increased inflow of foreign exchange into India.

Click here to read this article:
http://www.legalserviceindia.com/articles/out_ser.htm