7 Advantages of Outsourcing to India Your Boss Wants to Know

Advantages of outsourcing to India

Outsourcing is one of the most beneficial business decision across the globe for past few decades. It has become popular due to lowered cost and high returns. Besides lower cost, outsourcing also offers skilled workforce and timely deliveries to the businesses. It definitely results in increased efficiency and ROI.

Over the years Businesses based in the countries like US, UK, Australia are outsourcing their work to Asian countries like India & Philippines.

India by far has been the preferred destination.

Here are some statistics on outsourcing

  • Hexagon consulting suggests, India’s outsourcing business today stands at approximately $US 118 billion, clearly proving India’s dominance in the outsourcing landscape.
  • According to Tholons 2016 Top 100 Outsourcing Destinations, Bangalore has the highest share of outsourcing business in India. Mumbai, Pune, Hyderabad and Delhi are not far behind either. They are on the list of top 10 outsourcing destinations as well.

As there are there are different types of outsourcing , whether it’s finance and accounting, IT or ITES services; India is the most preferred destination for outsourcing business on account of many a reasons.

Here is the list of few companies that outsource their back office services to India

There are many company who sends their back office work to India. Below are few of them.

  • IBM
  • Vodafone
  • Telstra
  • BestBuy

Why do companies choose to outsource work to India?

1. Lower Costs & Higher Benefits

Money is at the core of all reasons for outsourcing. India has proven to be the most cost effective. Labour costs in countries such as US, UK, Australia, Canada and Dubai are enormous as compared to India. Lower costs directly have an impact and increases the ROI. Instead of hiring in house workforce, agencies prefer to outsource their business to Indian agencies which provide them dedicated workforce which would work exactly like in house resources will work for the agencies abroad. It offers not only flexibility, but also reduction in capital expenditure, infrastructure and maintenance costs by a considerable margin.

2. Communication

Seamless communication is another reason that these countries prefer India more than any other country. Effective communication is the most vital factor for better execution of plans and strategies. Indians are known to speak English better than their Chinese or Filipino counterparts.

3. Access To Skilled Workforce

Outsourcing business to India facilitates access to skilled resources with plenty of experience. With the highest number of skilled resources in sectors such as IT, BPO and Finance to name a few. India also boasts upon the maximum experience in handling critical projects with utmost ease. Availability of skilled workforce at reasonable pricing is icing on the cake for the agencies based in US, UK, Australia, Canada and Dubai among others.

4. Advanced Infrastructure & Latest Technology

Indian agencies heavily focus on the deployment of the latest of technologies and infrastructure. Besides, training the workforce on the latest technologies is at the core of their strategy. They conduct training programs on a regular basis to ensure their employees are at the top of their game all the time. This helps Indian firms cater to the demanding needs of overseas clients and execute critical projects in a seamless manner.

5. E-commerce Solutions

Ecommerce is one of the areas, India has gained measurable dominance in, in the past few years. Amazon, the pioneer of eCommerce choosing to setup a software development center in Indian cities such as Pune, Bangalore, Hyderabad & Chennai vouch for that. E commerce companies have over the years focused on making themselves more competitive than ever. That’s the reason, they have turned to technology for maximum output. Integration of customer support and logistics vouch for that.​​​​

6. India’s Outsourcing friendly policies

Outsourcing business is one the main sources of foreign income for India economy. And hence India’s outsourcing policies are flexible encouraging overseas agencies outsource their business to India in a hassle-free manner. From $US 50 billion in 2010 to $ US 118 billion in 2016, India’s growth in outsourcing is immense. The statistics clearly suggest that while India’s policies are considered favorable for outsourcing, availability of skilled resources at lower costs on the other hand makes India the best choice for outsourcing.

7. Productivity & Better Customer Support

Outsourcing increases productivity and customer support. Both of these factors are indispensable to efficiency and 100% customer satisfaction which also results in recurring business. Round the clock customer support, in-spite of time zone differences and great command over English also helped India climb up the ladder in a short span of time outdoing all other countries.

Regardless of the numerous advantages and benefits of outsourcing, drawbacks of outsourcing additionally abound. Just like outsourcing might end up being good for businesses, the management of a company should weigh the benefits as well as the drawbacks of outsourcing before actually choosing the process.

The disadvantages of outsourcing give businesses a chance to consider what they’re stepping into. Therefore, it is important that before the businesses get to decide on outsourcing their own corporation’s company processes, they have to first bear in mind the drawbacks of outsourcing:

One of the greatest drawbacks of outsourcing is unwanted results.

This is also true when a business hires a third-party merchant to bulk produce a product. When the completed items don’t fulfill quality requirements, the production process should be repeated by a different dealer.

Moreover, in outsourcing, there is much less managing control.

It might be tougher to manage the outsourcing company when compared with managing your private workers. Also, outsourcing might be more expensive too. Frequently it’s less costly to keep a procedure in-house rather than outsource.

Additionally, one of the leading issues in outsourcing is the fact that when the outsourcing business goes out of business.

Quite simply, whenever your outsourcing company goes broke or bankrupt, your organization will need to rapidly change over to an alternative company or go ahead and take process back in-house.

Furthermore, in outsourcing, safety and discretion problems are the most significant.

Therefore, if your business is outsourcing company procedures such as payroll, private info such as salary, all of these are going to be known to the outsourcing company. Consequently, ensure that you spend special focus on the kinds of info that you grant them use of.

Whenever you come down to business, disadvantages are unavoidable particularly to the flourishing business like Outsourcing. That’s the reason companies ought to be more extra careful regarding their privacy, safety and more importantly, financial problems while dealing with an outsourcing company.

About Pratik Hambardiker

15+ Years of Experience In Outsourcing Industry, Digital Marketer & Rider By Passion, Learner by Nature , Hard worker by Genes.

Please feel free to reach out on [email protected]

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3 Comments on “7 Advantages of Outsourcing to India Your Boss Wants to Know”

  1. I believe that there are more advantages on outsourcing than disadvantages. Outsourcing has promising results to ones business. It helps to promote the business and increase profits. Nowadays there’re many software outsourcing company in Vietnam like PowerGate,..and I think Vietnam has some advantages to develop software outsourcing such as profession skill, labour, environment,…

  2. Great article. I found the statistics you have mentioned to support your stand to be very useful as well. Being from the outsourcing sector myself, I can say that I agree with these points. Outsourcing to India has been a wise choice for western companies for over two decades. The benefits you have mentioned here are the exact reason why.

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