7 Reasons Why Outsourcing to India is good for your Business O2I

Senior architects, UI/UX designers, and business analysts will save your core team from starting from scratch. Because you only require this expertise for the duration of your project, outsourcing saves you money by eliminating the need to hire them on a long-term or full-time basis. Doing a background and track record check is essential in identifying the correct outsourcing software development partner. As an organization grows, the tasks and projects and the need for more skilled work increases. To keep up with the competition and to maintain an efficient workflow, companies outsource their business processes to service providers across the globe. And today, outsourcing has grown to become a global industry in itself.

• These advantages discussed above serve as the country’s competitive edge against any other preferred outsourcing destination out there.
• As part of its massive restructure, Telstra outsourced to India to fill new software engineering jobs.
• When you outsource to India, you get access to a team of developers who can work around the clock to meet your deadlines.

I offer to you, from my own experience, the reason why you should consider outsourcing your technical work. And although outsourcing options exist in Eastern Europe, the Pacific Rim and Latin America, I will use India as my reference point for the sake of this article. Let's look at the advantages and disadvantages of outsourcing to India to help you decide if it's the best outsourcing destination for your business. After all, there are many to choose from these days - part of the reason The BPO Network exists - to help you fast-track your offshore staffing due diligence process.

“Staff churn is absolutely increasing,” says Horowitz of PricewaterhouseCoopers. “We used to think it was just the call centers which were staffed by college kids. They’d get a few months of experience and move on to greener pastures. It’s a really big issue.” HR anxiety keeps global delivery executives up at night, says AMR’s Stiffler. Sure, India-based operations are hiring thousands a year, but they can’t hold on to them. This kind of competition is helping the industry grow at an astronomical rate.

The Indian government has also invested in infrastructure and technology to reflect international standards. The pricing flexibility allows companies more freedom and creativity in managing their budget while saving costs. Let’s find out procedures for capitalizing fixed assets why outsourcing to India can be a smart choice for businesses of all sizes. For starters, the selling point of Indian BPOs is their unlimited source of workforce. This is why they focus more on getting the Fortune 500 than the SMEs.

Knowledge process outsourcing (KPO) services

Outsource2india is a premium outsourcing company located in Bangalore. Our services are cost-effective and can be customized to suit our client's specifications. IT is regarded as one of the top 5 priority industries in India, and the government has framed policies to obtain maximum benefit from IT outsourcing to India. Under the BOT model, you collaborate with a development partner from India to help you build and run an offshore software development team in India. When you’re fully ready, you can take complete control over the operations of the team.

Some good project management tools include ClickUp, Wrike, Jira and Workzone. Luckily, you only have to invest in the right set of tools to avoid these issues. It’s known for handling IT-enabled services (ITES) for other companies. With hundreds of firms catering to your niche, you must make an informed choice while choosing an outsourcing firm. The first step in outsourcing to India is to understand the outsourcing industry in your niche. Infosys Chief Operating Officer U.B. Pravin Rao is retiring on a baffled note, it seems.

Seven Reasons Why Outsourcing to India is Good for Your Business

This can, however, also be a benefit as it aligns well with the 24-hour operations trend and expedites project completion in sectors like IT and customer support. There’s the Philippines, known for its BPO prowess, Poland acing the IT sector, and Brazil making waves with creative projects, showcasing global business strategy at work. When you are working on a project, especially when nearshoring or offshoring, time becomes a critical factor. Delays can arise when you are doing client communication or translating requirements to Indian programmers, hindering your global business strategy.

The Investment Hub of India

Today, several companies outsource their customer support departments to India. From then the outsourcing market in India has grown in leaps and bounds. According to a study, in the next four years, the BPO services market in India is expected to grow at aCAGR of 7.63%. One of the booming sectors in India today, the telecommunications sector is growing in size and potential.

Australia’s workforce is currently too small to meet Telstra’s need for specific skills. This is where India’s huge workforce takes place as an advantage. “Major margin compression is occurring within the traditional India-based outsourcing model and is well recognized by these firms, says Steve Brown, IT consultant and former CIO of Carlson.

Benefits of Outsourcing to India:

One of the major reasons why businesses hesitate to outsource to India is the fear of linguistic and cultural barriers. Although English is widely spoken in India, the accent, dialect, and cultural nuances may sometimes make communication difficult. Another outsourcing to India problem that businesses may face is cultural differences. India has a diverse culture, with a different approach to communication, work, and problem-solving than many Western countries. These differences can create misunderstandings, lead to miscommunication, and affect the project’s overall success.

High-quality Services

According to IBM Security, 46% of Indian firms are victims of cyber crimes. It is alarming, especially if those businesses keep sensitive information for big corporations. However, this may fall through with the high attrition rate in India’s BPO sector.

Three commonly outsourced services in India

Based on Glassdoor, the average salary of a software developer in Bangalore, India is $8700, while the average salary of a software developer in the USA is 10 times more. The most visible benefit relates to the cost savings that outsourcing brings about. When outsourcing to India, it’s important to take cultural differences into account in terms of communication style, workplace culture, religious beliefs, and social customs. Being aware of and accepting these variances aids in aligning with the global outsourcing scene.

Tesco set up its shared service center called Hindustan Service Center in Bangalore, India in 2004. The center runs Tesco’s IT functions like ERP and Enterprise Application Integration as well as its BPO functions like payroll processing and invoice processing. Similarly, the trend for retail companies to outsource their services to India has grown exponentially over the years. Since the onset of globalization in the nineties, outsourcing became popular and India became a preferred location for companies. India offers a distinct combination of technological advancements and communication which motivated companies to outsource their business processes to India. One of the key reasons to outsource to India is to access skilled talent.