Fact Checked

What is ITES?

Lakshmi Sandhana
Lakshmi Sandhana

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.

Call center services are considered ITES services.
Call center services are considered ITES services.

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.

You might also Like

Discussion Comments


I read about this type of business outsourcing in the book the "Four Hour Work Week". While I have not been able to reduce myself to a four hour work week just yet, I was able to implement quite a few ideas. And it was definitely an interesting read.

About outsourcing it had the serious part of business outsourcing where you might hire someone to do research for you, and just as this article mentions it would be advantageous to hire someone from a different country.

It also had a funny story in which a writer had an ITES contract for his social life and began to have this worker write his wife letters for him. The English language differences made for some funny miscommunications between the outsourced worker and the writer's wife!

It also had some tips in the book for how to pick the right ITE job site for your needs.

Post your comments
Forgot password?
    • Call center services are considered ITES services.
      By: diego cervo
      Call center services are considered ITES services.