The debate on the economics of offshoring work in the IT and ITES space (BPO), rages on the world over. In India, labour arbitrage is singled out as the most important factor that moves the needle for Indian IT/ITES firms.

However at the root of Indian competitiveness in this space, there is more than just cost. As industry observers hail a successful decade for the Indian BPO industry, the most obvious point seems to have been missed. India has retained its competitive edge by delivering ‘predictable & consistent quality’.

Arguably, this ‘predictable & consistent quality’ is what helps Indian BPOs leverage the much touted labour arbitrage. What scripted India’s offshoring success story is a multitude of English speaking people, willing to execute routine work at internationally accepted quality standards.

Some of the countries playing catch-up to India have laid fresh emphasis on churning out graduates conversant with English. But that level of comfort with the language is almost inherent to the Indian workforce. As long as India maintains that edge and remains consistent, it has a place as the software backyard and the back-office of the world.

Much of the credit for India’s success at creating a massive offshoring-ready workforce goes to the 170-year-old McCaulay system of education. Thomas Babington McCaulay (1800-1859) was posted in India in the first half of the 19th century, when India was just brought fully under control of the British Empire.

A master of English prose & literature and a twice elected member of the House of Commons, McCaulay came in as a member of the Supreme Council of India. By the time he sailed backed in 1837, he had laid the foundation for two of the most important systems which would change India as a country - the Indian Penal Code and the education system.

McCaulay outlaid the plans for Indian Education System in the McCaulay' Minute of Education which was reviewed and passed by Governor General William Bentick in 1835. Bentick concurred with McCaulay that the true objective of the British government should be the promotion of European literature and culture in India.

That was the first step towards establishing the use of English as a language in Indian education. Today English has come to stay in free India. Whether the critics like it or not, it is impossible to replace English as the medium of instruction in higher education, language of governance and the language of technology long after McCaulay left for British shores.

It is this foundation of English based education that makes it easier for Indians to excel as an offshoring destination of choice. Today, as the BPO sector in India flourishes as a multi-billion dollar industry providing direct employment to over 700,000 professionals, a hat tip to Thomas Babington McCaulay is long overdue.