Seven Reasons Why Outsourcing to India is Good for Your Business

They have been helping top companies with inbound customer and back-office support for a decade. While virtual communication tools can help you cross the distance, time zone differences can create a delay in getting the message across. It’s no secret that most companies prefer offshore outsourcing to save costs. The lack of flexibility can also affect the working relationship between the client and the outsourcing firm. If the client requests changes to the project, it can be difficult for the outsourcing firm to accommodate these changes without delaying the project timeline or increasing costs.

Decreased labor costs, quick delivery, availability of services and indirect cost savings to name a few. Some foreign businesses did not allow the work-from-home setup for security reasons. As stated, outsourcing companies in India cannot protect data outside their offices. Thus, foreign partners enforced the “Force Majeure” clause in their contracts. When it comes to outsourcing software development, clear communication is critical. Developers need to understand the client's requirements in detail to deliver high-quality software solutions.

Besides that, some of their employees can’t provide equipment for themselves during the lockdown. In addition to this advantage, India is also an expert in the I.T. Most companies rely on them to maintain their website and develop business applications. Another significant benefit of outsourcing in India is the unlimited workforce available. Building infrastructure is one thing; you still need people to work for your company.

Today, the drivers are often more strategic, such as how a company can best utilize its own core competencies. Though the outsourcing of manufacturing is an old story, outsourcing to services is a relatively new phenomenon. Services outsourcing to India started in the 1980s and rapidly accelerated in the accounting journal entries '90s. In today's world where information technology has become critical to business, the meaning of outsourcing has undergone a drastic change over the years. Companies have started focusing on their core competencies and outsourcing many non-core functions, for which they had no competence internally.

Typically 50-70% is saved on the all-in cost of an in-house staff member vs an outsourced staff member. Below are some of India's most popular destinations for outsourcing, though there are providers right across the country. Outsource Accelerator is the leading Business Process Outsourcing (BPO) marketplace globally.

Stable government

Indian outsourcing vendors have continuously adapted to internal and external challenges and the credit for this goes to Indian outsourcing companies and the successive enabling governments. Outsourcing in India has faced adversities due to the state of the world economy and the ongoing recession, but it is surely here to stay. If Software Engineering Institute's 'Capability Maturity Model Level 5' is the highest quality certification in the software industry, then India's the place to be. With 65% of the world's CMM Level 5 companies and one of the world's largest pool of scientific and technical talent, India is a logical choice for outsourcing. The Indian outsourcing industry is supported by a stable pro-IT Government whose policies on the economy have helped improve infrastructure as well as communication systems.

• These legal issues can lead to costly litigation and damage the business’s reputation.
• Fast forward to five years later, the Philippines has surpassed India in terms of revenue and headcount to claim first place in the global outsourcing business.
• Considering the aforementioned advantages of outsourcing to India, no wonder why the country has become the preferred outsourcing destination for business across the globe.
• On top of that, Indian companies prefer to profit from one company rather than doing multiple accounting processes for each small business.
• While the cost factor plays a huge role in outsourcing, the consistently high quality provided by Indian outsourcing firms has also enabled India to remain as the top outsourcing decision.
• Service providers from India not only offers cost-effective solutions but also ensure value addition by improving quality and productivity.

India has cultivated an image as the outsourcing hub of the world by creating a platform which makes it accessible for companies to outsource their business processes. While IT and BPO sectors take the lead many other industries have realized India as their preferred destination for outsourcing services. While other countries have their strengths, India offers a versatile buffet of services – from IT to customer support, and even niche sectors like BPOs and backend tasks.

India’s outsourcing competitors

The BPO Network can help you find and connect with those 2-3 high-quality providers who can meet your specific outsourcing needs. Get in touch and send us your requirements so we can start preparing a shortlist of outsourcing companies and some quotations. India's telecom, broadband, power, and other infrastructure have improved dramatically in recent years. Because Indian cities have cheaper real estate rates than Western countries, Indian outsourcing companies can provide you with high-quality services at a lower cost than most other countries.

India's popular outsourcing destinations

This is because they apply western standards in a country that has very specific cultural and differences compared to the west. He added that a local approach is necessary for building a strong BPO joint venture. In the last decade, GE planned to outsource 75 percent of their IT jobs and locate 75 percent of those jobs in India. However, with the high attrition rate in India’s BPO sector, this may fall through.

A Preferred Destination For Software Outsourcing – India

It had previously outsourced its in-house talents from Indian third parties. Australia’s workforce is too small to meet Telstra’s need for specific skills. This outsourcing failure caused some call center operations to return to the U.S.

Why should you outsource your business operations to India?

InfoStride is a global leading provider of IT services and solutions to clients worldwide. Our team of 250+ skilled developers, engineers, testers, business analysts, consultants and other experts is at the forefront of helping companies bring their unique ideas to life. When your business grows, it does so because you successfully deliver a product the market demands. But what if you experience exponential growth and need to ramp up your support infrastructure? And how will you meet either of these demands while continuing your current rate of growth? Outsourcing allows you to delegate noncore activities and lets you maintain your focus on the activities that make you successful.

Why Outsource to Indian IT Companies?

Thus, this model is ideal for long-term projects with changing requirements. As you can clearly see outsourcing to India has many advantages over building an in-house team, thus no wonder why this practice has become so prevalent. Offshoring is most prevalent in the IT industry due to a shortage of IT professionals in the local market.