Domestic trade, transport or transportand communication services have grown very rapidly in the service sector, especially in India. In this too, the telephone, especially the mobile phone, contributed the most. The growth rate in the services sector, especially in financial services, was 5.6 per cent in 2003-04. Changed to 11.1 percent in 2006-07. Today, due to these liberal policies, there has been a rapid increase in demand for many services like hotel visit, stay food, travel, shopping, use of private hospital and schools, vocational training etc. This type of situation bas been seen in small and big cities as well as in metropolitan cities. Out of sourcing has emerged as a new and very important comprehensive activity due to liberalisation policy. Due to the low cost of India, multinational companies get their operations done in India, Which help them in reducing the cost.
Such activities have in fact become very important and specialized economic activities with the widespread of information technology. India today is a provider of information technology on a global scale. Today from India fast sound based process i.e. BPO or Call center, Recording, Accounting, Banking services, Railway enquiry, music recording, teaching and research work etc. are receiving many services from companies or institutions of many developed countries like USA, European Union.
India has become an important destination in terms of outsourcing. But for countries like United sates, Britain, it has become a popular issue and problem.