Factors Influencing Entry of ITES Firms into High Value Services

Developed countries were facing the shortage of skilled manpower, and services were available in higher wages. They started outsourcing services from developing countries as a part of their competitive firm strategy. Growth of the offshore outsourcing industry in India is impressive and companies are providing both low-value and high-value services. It is projected that a big share of the estimated growth in the demand of high-value services will be outsourced from India in the near future. In this context, the present study attempts to identify factors important for Information Technology Enabled Service (ITES) provider firms’ entry into high-value services. The important factors for entry found are ‘employees’, financial performance of the firms measured by ‘return on capital employed’, ‘return on sales’ (ROS), and location of the firms.