As manufacturers began moving the production of goods to nations with less expensive labor during the industrial revolution, sourcing began in India. Until several major international airlines started sending their back-office work to India in the 1990s, business process outsourcing (BPO) was neither efficient nor well-organized. India has become the top location for business process outsourcing because of a special mix of factors that it provides. Technology and communication advancements have made it possible for multinational corporations to quickly and cheaply go worldwide.

India's prosperity has benefited greatly from the IT and BPO industries since the cost of international connectivity is fast falling and the standard of service is rising. NASSCOM, the National Organization of Software and Service Businesses of India, has been essential.