What is ITES?

ITES stands for information technology enabled services. It refers to the outsourcing of numerous processes in which the provider utilizes telecommunication technologies and the Internet to provide those services, mainly for companies in non-information technology (IT) fields. It covers a wide range of areas such as manufacturing, healthcare, banking, insurance, telecommunications and finance. Some of the services provided are call center services, payroll, medical transcription, bio-tech research, insurance claims and credit card processing. Other services include customer care, human resources administration, web marketing, back-office data processing and accounting.

This has been an extremely fast-growing global industry, and many businesses and large companies frequently outsource services to ITES providers in other countries. The company saves a substantial amount of money on costs. It also helps the country that provides the offshore service, because it creates a large number of jobs. This boosts the economic progress of the country providing the service. ITES providers help global corporations meet their business goals and provide a valuable service with the aid of information technology.

ITES was established near the start of the 21st century when companies started to outsource simple processes such as data entry to offshore vendors. The growth of the Internet and the rapid progress made in related fields such as telecommunications made it possible for companies to outsource more diverse services over time. ITES providers offer e-commerce solutions to businesses from e-enabled sites. Services such as knowledge process outsourcing (KPO), games process outsourcing (GPO) and knowledge management all fall under the banner of ITES services.

Many companies located in developed countries outsource services to firms offering IT-enabled services in countries such as China, India and the Philippines. This is more economical for the company involved. The companies also usually can choose from a large set of offshore service providers that offer competitive rates. Firms also take advantage of the attractive policies and friendlier tax plans offered by the governments of the respective countries.

Aside from low costs, companies also get to work with firms in developing countries that feature an intelligent English-speaking labor force and whose IT infrastructure meets global standards. Many ITES providers offer services around the clock and seek to integrate more services in one delivery mechanism. A corporation can be classified as an ITES company if it outsources services through the Internet and other electronic means of communication and utilizes information technology from the initial process specification stage to the final delivery of the service.