Issue of Equity

India Outsourcing Services PLC
21 March 2006


For immediate release                                        21 March 2006


                    INDIA OUTSOURCING SERVICES PLC
                 ('India Outsourcing' or 'the Company')

                  Strategic investor increases shareholding



India Outsourcing Services plc (AIM: IOS), a company formed to capitalise on
acquisition and investment opportunities primarily in the Indian business
process outsourcing market, is pleased to announce that it has received
notification that Wheddon Limited ('Wheddon'), an investment vehicle associated
with Vincent Tchenguiz' Consensus Business Group ('CBG'), has subscribed for an
additional 1,000,000 ordinary shares of 10p each in the Company at 50p per share
in a private placing. This placing brings Wheddon's total shareholding to
1,312,500 shares, equivalent to 13.85 per cent of the Company's issued share
capital. The new shares will be admitted to trading on AIM on 24 March 2006.



Wheddon, which initially invested in India Outsourcing in September 2005, is a
strategic investor in the Company.



Over the past few months the Company has been working with Consensus, Vincent
Tchenguiz' venture capital arm, to identify opportunities where India
Outsourcing could provide offshoring solutions to Consensus' portfolio
companies.



Amit Pau, India Outsourcing's Chief Executive, said: 'I am delighted that
Wheddon has decided to increase its shareholding in the Company and that we
continue to work closely with Vincent Tchenguiz and Consensus to provide some
innovative and value adding offshoring opportunities.'



                                      ENDS





For further information:


India Outsourcing Services plc                    Tel: [phone]
Haresh Kanabar, Chairman
Amit Pau, Chief Executive

Teather & Greenwood                               Tel: [phone]
Mark Dickenson
Sindre Ottesen

Buchanan Communications                           Tel: [phone]
Mark Court/Elly Williamson



                      This information is provided by RNS
            The company news service from the London Stock Exchange