Outsourcing means obtaining services by contract from an outside source. Outsourcing coupled with high growth of service sector turned the fortunes of India in terms of huge foreign exchange reserves, as supported by the following :
(a) Foreign countries, in order to gather cheap raw material and cheap labour services, from a rich labour and material resource country like India are actively engaged in commercial terms with India.
(b) Relatively less dependence on agricultural sector with growth of service sector has transgressed the national frontiers to align with international parties. Globalization has led to free movement of labour, capital, financial and other resources among nations.
(c) Infrastructure development adhering to international standards. All of the above resulted into huge earnings in terms of foreign exchange in India, trading and collaborating with international parties.
