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What is an Information Technology Enabled Service (ITES)?

Horizons hire, onboard & pay your global teams in +150 countries.

Key Takeaways

1. ITES, or Information Technology Enabled Services, refers to the outsourcing of processes in which the provider utilizes telecommunication technologies and the Internet to provide those services, mainly for companies in non-information technology (IT) fields.

2. Information Technology Enabled Services (ITES) are also called web- enabled services, remote services, or teleworking. ITES helps global companies meet their business goals and provide a valuable service with the aid of information technology. ITES covers the entire gamut of operations that exploit information technology to improve an organization’s efficiency.

3. These services provide a wide range of career options that include opportunities in a call center, medical transcription, medical billing and coding, back-office operations, HR services, web services, etc.

4. A wide range of areas such as manufacturing, healthcare, banking, insurance, telecommunications, and finance use ITES. Some of the services provided are call center services, medical transcription, bio-tech research, insurance claims, payroll, and credit card processing. Other services include customer care, human resources, administration, web marketing, back-office data processing, and accounting.

Many companies in developed countries outsource services to firms offering IT-enabled services in countries such as China, India, and the Philippines, to save money.

Experts say that 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 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.

ITES is a fast-growing global industry. Many large companies frequently outsource services to ITES providers in other countries.  Outsourcing saves the client company money and boosts the economic progress of the country providing the service by creating more jobs. 

The widespread application areas are those where an enormous amount of data that needs to be processed and utilized for delivering the results, or the data is the outcome of the service. In all cases, without IT, the task would be unmanageable. Some of the most critical areas that deploy IT-enabled services are:

  • Telemarketing
  • Helpdesk
  • Customer Support Centers
  • Data Warehouse
  • Transcription Centers
  • GIS Mapping for Transport tracking
  • Electronic Distribution

Video: ITES in India from the National Career Service (India)

Read here for more info on how to hire an Indian Software Developer without an Indian entity.

Benefits of ITES

When you outsource staffing such as ITES, you engage a trusted third party to take over your recruitment, payroll, tax, and compliance. There is a range of benefits when you outsource staffing. These include:

Cost Reductions

Flexibility and Speed

  • An outsourced staffing provider has the know-how and processes to acquire and onboard new staff for your business quickly. They can also respond promptly to any staffing issues as they arise. Therefore, your company does not need to hire permanent employees.

Efficiency  

  • Your ITES provider can allow you to focus on your core business and tap into existing supply chains.

Talent acquisition

  • Depending on your overseas locations, your company may find it impossible to access the equivalent expertise when you try to hire employees directly.

What are the risks of ITES?

The risks involved in using ITES include:

Control

  • Some multinationals may prefer to carry out all human resources, for example, in-house rather than outsourcing.
  • These companies may have their individualized approach to human resource management.

Cybersecurity risks

  • Companies may consider their IT information proprietary and be unwilling to risk a data breach.
  • Outsourcing an information system can cause security risks to communication and privacy. It isn’t easy to control the security of a North American or European company when its data is managed in India or Bangladesh, for example.
  • The risks and threats of outsourcing can be managed with new agreements.

Personal data breach

  • In order to minimize the risk of a data breach, many companies employ a DPA, or Data Processing Agreement.
  • It is a contract between a data processing company (data processor) and a company that collects data (the data controller). The DPA is required by law, where the GDPR applies to that company.
  • Many companies use a data processor to help them store and analyze the data they have collected. The DPA allows companies to map out exactly how the data will be protected and securely stored so that they avoid data breaches.
  • GDPR does not only apply to EU-based companies. Other international companies will be subject to GDPR compliance if they provide goods or services to EU residents or track information about EU residents. This means that DPAs may apply internationally.

Conclusion 

Companies that want to outsource IT-enabled services overseas should look into a firm like Horizons.  Horizons provides payroll, HR, and Employer of Record services. As a global professional employer organization (PEO), Horizons handles the processing of employee personal information and ensures that Data Processing Agreements are in place, where necessary, and that all other aspects of GDPR compliance are satisfied.

Managing global payroll across international borders and multiple languages is challenging.  Horizons manages payroll on behalf of companies in more than 150 countries and regions. Depending on its laws and regulations, each country has its own approach to payroll and withholding tax. Its all-in-one payroll and HR solutions allow your company to streamline its international payroll and fully comply with local laws.

Outsourcing payroll saves you money and time, as well as giving you access to experts so you can prioritize your core business and enjoy guaranteed compliance. Contact Horizons today for a free consultation.

The ITES industry, also known as Information Technology Enabled Services, is information technology that enables a business to improve its quality of service.

The Information Technology Enabled Services industry helps to provide services in different parts of the world with the help of telecommunication. This industry indulges in outsourcing various quality web-enabled services throughout the world.

These services provide a wide range of options that include opportunities in call centers, medical transcription, medical billing and coding, back-office operations, HR services, web services, etc.

ITES, or Information Technology Enabled Services, uses telecommunication to provide services to companies in different parts of the world.

ITES provides a range of IT-intensive processes and services, which includes business process outsourcing (BPO) and knowledge process outsourcing (KPO) supplied from a distant location and delivered over telecom networks. Therefore, BPO is one of the verticals under ITES.

BPO is a relationship between two organizations in which one performs certain functions, like human resources, on behalf of the other.  The services provided are commonly a combination of technology, expert guidance, and administrative help.

Horizons hire, onboard & pay your global teams in +150 countries.

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