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Most of the IT companies are outsourcing their services because of basically two reasons, there may be other reasons too, 1st, to remove work load and secondly, for cost advantage for instance it's a well known fact that India and China is a hub for call centers of European countries. India's BPO and KPO industries are the result of outsource of these countries. Global sourcing sometimes intends to take advantage of global efficiencies in the delivery of a product or service. These efficiencies include low cost skilled labor, low cost raw material and other economic factors like tax breaks and low trade excise. As we have already discussed, familiar examples of globally-sourced products or services include: labor-intensive manufactured products produced using low-cost Chinese labor, call centers staffed with low-cost English speaking workers in the Philippines and India, and IT work performed by low-cost programmers in Asian counties like India and China.