India has become favourite outsourcing destinations because of the following reasons -

1. Availability of cheap labour - The wage rates in India are comparatively lower than those in developed countries.

2. Skills - Indians have good technical and communication skills and they are open to International languages.

3. Political environment - The political environment of India is stable and favourable for MNCs.

4. Cheaper resources - The resources other than labour are also available in India at cheaper rates so as to ensure the proper and smooth functioning of MNCs