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Back office operations in India
Active government championship of the software engineering sector, careful adherence to internationally recognized quality standards and promotion of India’s competitive advantages have created a significant success story. In 1999, software exports from India were worth over US$ 2.6 billion, giving the country some 18.5% of the global customized software market.
Hi-tech parks have been created in rural areas, providing employment, training and increased amenities to local populations. These parks generate other non-back office operational businesses and jobs to provide the support services needed by the employees in the park, including catering, health, accommodation, retail and other services.
This boom in the information technology (IT) industry has now had a ripple effect on other offshore back office operations, sparking a rise in services such as data processing, call centres, medical and legal transcription, insurance claims processing, and payroll and accounting services.
Back office operations in Mauritius
Mauritius decided to build support for an offshore sector and formed a trade support institution, the Mauritius Offshore Business Activities Authority. The authority upgraded the Mauritius offshore sector by negotiating double taxation treaties (now completed with 16 countries), assisting the government in developing an efficient legal and fiscal framework, and providing a “one-stop shop” for assistance to investors in creating their offshore business. Subsequent growth in the offshore sector triggered growth in IT-based services, and thus served as an indirect springboard for growth in back office operations.
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