Small industries are catching on to the benefits of IT outsourcing.

In India, small and medium enterprises (SMEs) have begun to utilise IT solutions, such as enterprise resource planning, in order to up-scale their business.

Bangalore, in particular, has been singled out as a region where IT outsourcing is becoming an integral part of SMEs' day-to-day operations, reports MSN News.

Arjun Ranga is managing partner at NR Rango Rao and Sons – a firm in the region that has entered into an IT outsourcing agreement with a company called Affordable Business Solutions.

Mr Ranga told the news provider: "Our main motive was to completely do away with the disparate applications which were giving data at different time cycles, thereby delaying the turn around time for decision making."

Furthermore, another IT outsourcing firm reported this week that it expects to see an upturn in contracts during 2008.

Alsbridge said that significant activity at the end of 2007 indicates that 2008 could be a better year than first expected for the IT outsourcing industry.

© Adfero Ltd