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As companies that rushed to outsource business functions in recent years have found, reducing costs often has a cost.
It will become even easier to outsource business processes, or at least those parts of them where firms do not enjoy a competitive advantage.
The rules about data privacy will apply to all Indian organizations and will affect multinational corporations that outsource business operations to India or have opened back-offices here.
When unique components needed to be expedited more urgently than the company's big pipeline could handle, IMATEL would, in effect, outsource business to a competing (and more expensive) delivery company, such as Federal Express.
Jennifer Barnes, co-founder and president of San Diego-based Pro Back Office, an outsource business accounting service, says she decided to spend $25,000 a year on employee rewards and engagement service Bonusly.
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"We're not in the land of scarcity," says Kevin Campbell, who runs Accenture's outsourcing business.
Forrester projects that the offshore outsourcing business will grow by 17percentt annually through 2012.
Woodford has also backed Royal Mail and engineering outsourcing business Babcock International.
In the meantime, he will grind away at his outsourcing business.
The company agreed to sell its customer care outsourcing business to Synnex, a hardware distributor, for $505 million.
They have outsourced business to contractors that can do the work more efficiently, often in places where wages are lower.
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