U.K. budget can further open gates for BPO to India.

Business process outsourcing deals come pouring down to India. If U.K. Chancellor Gordon Brown's pre-budget report is anything to go by, India can look forward to more outsourcing contracts from UK banks and insurers in the near future.
In his proposals on Thursday, Brown hinted a possible clampdown on value added tax (VAT) loopholes, which allowed outsourcing firms to avoid the levy on contracts, which will save millions of pounds for the exchequer.
If the new proposal comes into play India could be the biggest beneficiary, since more UK companies could transfer their call centre and back office functions to India to avoid incurring VAT.
"India is attractive for other reasons apart from VAT, such as the lower labour costs. But it is another reason for banks and insurers to look offshore when they are considering outsourcing", Mr. Kendra Hann, head of London VAT at Deloitte accountancy group was quoted saying. 'If one has to claw back at the 17.5 percent tax, the best way in which do it would be to move offshore. New proposal could inadvertently help offshore suppliers, which are not subject to this tax', said Mr. Nigel Roxburgh, co-founder of The National Outsourcing Association.