Outsourcing to India

The bad, the good and the best!

India as an outsourcing destination

Your search for high quality work, better pricing, high productivity, favorable time zones or outsourcing friendly policies often end, when it comes to outsource work to India. India remains unmatched in being the top outsourcing service provider to most of the companies.

- As per the recent survey, 80% of US and European outsourcing firms have ranked India as India as #1 outsourcing destination.

- As per the reports of National Association of Software & Service Companies (NASSCOM) , India has been chosen as best outsourcing firm by almost half of all Fortune 500 companies.

- With a tremendous growth of 25-30% every year, India promises to be the top outsourcing destination for all the fortunes across the globe in the coming years.

Why is India preferred

India remains the ultimate outsourcing destination and is often regarded as great problem solver and hustler because of various reasons including:

Large technical pool of artisans

India has the largest professional and technical pool of artisans in comparison to other countries. Around 3.1 million graduates are added to the workforce every year and the talent does not wrap up only in number, but it is the quality of talent that gains attention here.

Flexible pricing options

The hourly cost of a developer can be reduced to as low as $15 per hour in India. This pricing flexibility allows the companies to reap creativity and large profits in their budget.

High quality services

Apart from flexible pricing, India has been able t maintain its consistency in being the best outsourcing firm because of its high quality services. On-time work delivery with top-notch work standard is what makes India stand apart from others.

Assistance in business expansion

In the long run, every business needs support on increasing their customer base and research skills while continuing their current growth rate. Outsourcing to India can make you delegate non-core activities, while making you focus on core activities

Proven Facts

Many surveys have proved the fact that India is termed as the most preferred outsourcing location in terms of other global companies. More than 80% people in United States have marked India as their first choice for outsourcing software and IT services.

English Proficiency

Many surveys have proved the fact that India is termed as the most preferred outsourcing location in terms of other global companies. More than 80% people in United States have marked India as their first choice for outsourcing software and IT services.

Why it isn't

Everything has two sides. Some key disadvantages of outsourcing to India are as follows:

High Attrition Rate

India does have enormous, IT services options, but this advantage may also turn into a disadvantage. Vast job options serves the employee with other better options, thus leading to resource change. This eventually forces the organisation to explain the project from scratch to their new resource.

Enormous Options

As stated earlier, India is loaded with vast IT services options. Supporting this fact, as per NASSCOM, 30 million people will be working in IT sector by 2020. A simple Google search results into thousands of software companies available in India, thus making a tough choice for global business firms to differentiate between the average and best ones.

Outsourcing Attractiveness

What makes outsourcing to India the most attractive option despite of the drawbacks

India in comparison to other countries

Source: NASSCOM Report
Rank Country Attractiveness
1 India 7.12
2 China 5.61
3 Malayasia 5.59
4 Czech Republic 5.58
5 Singapore 5.45
6 Philippines 5.45
7 Brazil 5.44
8 Poland 5.33

Despite of the negative effects of outsourcing, the advantages generally weigh much more in comparison to the cons. More and more companies are moving towards outsourcing their work to India because of the numerous benefits tagged along with this service. Getting access to skilled developers and expert technicians makes your work process get handled in a much better manner, thus marking India as ‘big outsourcing destination’. Added to this, it also helps in in-house efficiency of your company, thus making you earn high revenue for your organization.

Various factors including easy availability of human resources, low taxes, affordable wages, high education of human resources, overall political stability and intellectual right security are serving as the key factors in making India as a proud, high ranked and most-established outsourcing destination.

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