Top 5 Reasons for Outsourcing to India

india outsourcing

When compared to nearshoring and offshore, onshore outsourcing ensures fewer cultural barriers and ease of communication; yet, it often results in high expenses and a limited pool of talent. By asking all these questions, you can ascertain to find the best IT outsourcing company; a company that understands your business requirements and has experience in your targeted industry. Make sure to screen the remote teams like you would any in-house hire during interviews to ensure success in your outsourcing ventures.

india outsourcing

Outsourcing to India grants companies cost-reduction benefits without sacrificing the quality of the output. India provides state-of-the-art technology and cellular networks in all major cities and towns. Because of this, clients are sure their outsourced employees will be using the latest and best in software technology. Companies from developed nations offshore parts of their business processes to India as they are able to majorly cut costs.

Written by Team High Peak

To avoid this, you can assign dedicated channels for different types of communication. For example, the in-house and Indian teams can use Slack for regular queries and Whatsapp when in need of urgent contact. Additionally, go through their website and case studies to understand how they function and their experience in the outsourcing industry. The Indian IT companies have the necessary skill and technological infrastructure required to carry out these core activities. KPO is the outsourcing of core information-related activities, such as R&D, data analysis and interpretation, etc., that are aimed to gain key business insights. Application development can be broadly categorized into mobile and web application development.

  • For example, you can get your software development outsourcing partner to sign an NDA (Non-Disclosure Agreement).
  • Before you begin looking for the appropriate IT outsourcing company, make a general plan of where you want to go.
  • With IT hubs like Bangalore, Gurgaon, and Hyderabad, India has proved itself to be at par with all the developed nations when it comes to IT infrastructure.
  • One way to screen service providers is by reading their customer reviews.

Let’s find out why outsourcing to India can be a smart choice for businesses of all sizes. India’s engineers might find it hard to find jobs even beyond the IT sector as startups too have been laying off employees in recent months due to a funding squeeze. IT firms such as LTIMindtree (LTIM.NS) and Wipro have been accused by an employee’s union of trying to cut costs by deferring joining dates and slashing starting salaries. “We have a lot of bench with us. They are ready to move into production projects,” Infosys CFO Nilanjan Roy said at the time. IT bellwether Tata Consultancy Services (TCS.NS) said this month it had “recalibrated” its hiring after a drop in attrition.

Job Outsourcing to India: Key Things You Need to Know About

Outsourcing to India allows you to delegate these non-core tasks to experienced professionals, which creates the opportunity for more time to be spent on the in-depth functions of the company. India offers a varied landscape of service providers which means that you are sure to find the perfect fit for your needs. By contracting out non-essential processes to a third-party with proven expertise in the field, focus can be redirected to a company’s core activities so as not to interfere with growth in size and operations. Peripheral services such as data entry, employee database, customer support, content creation, and design work can effectively and efficiently be managed externally with no extra risk to the business. In doing so, companies are able to turn fixed costs into variable ones whilst simultaneously reducing the burden of managing, maintaining, and extending benefits to a large workforce. India is presently the world’s second-largest English-speaking country.

Pai highlighted sectors such as financial services, consumer goods, specialised manufacturing, medicine, law, chartered accounting and other services as more viable options. However, when compared to other countries, India has the added advantage of offering better facilities and more optimized costs of operations on the ground. In this round a candidate is given a task similar to the one that he will face on the job. When the task is complete you should review it so that you can make sure that the candidate is technically well equipped to perform the task to the required quality level. In this scenario, you set up a remote team.You hire a remote employee who works full time for you and reports directly to you.

Due to the high volume of foreign and local companies outsourcing to India, Indian companies are equipped with the necessary infrastructure to work efficiently and remotely. They have state-of-the-art facilities and technology to ensure efficient work. Additionally, they are constantly developing and improving their infrastructure to further boost the outsourcing economy.

Given the benefits of outsourcing, it’s no wonder that large corporations and startups subcontract certain business operations. However, you need to carefully chalk out a plan before partnering up with any Indian outsourcing service provider. Conduct in-depth research about the industry and the companies we covered here to get a head start.

  • Over the years, India has gained popularity as an outsourcing destination across the globe.
  • Be careful when you choose and ask for a lot of past examples of work that has been done.
  • Although other countries like China, the Philippines, Ireland, Ukraine, and Mexico are giving tough competition to India, the country remains to be the most preferred outsourcing destination.
  • According to the Indian Brand Equity Foundation, the United States accounts for the lion’s share of India’s IT outsourcing revenue – a whopping 62 percent – followed by the United Kingdom with 17 percent.

This team would include 1 junior developer, 1 mid-level developer, 1 designer, 1 QA engineer, and a Project manager. Enterprises need to undergo digital transformation to leverage evolving technology and gain a competitive edge. Outsourcing web development services to India is one of the preferred choices of organizations. There are many reasons that could convince you to outsource web development to India. They can be related to quality, affordability, technology specialty, and much more.

IT Outsourcing to India: Bringing It to the Hub

When it comes to outsourcing, there are many other Asian countries such as China and the Philippines that are being preferred. But India remains the top outsourcing destination – especially when it comes to outsourcing software development. The primary reason and motivation for businesses to outsource their operations are to reduce payroll costs and other overheads. India is having less payroll rate in comparison to other countries such as Australia, Canada, the United States, and England. They obtain skilled and talented labor at a very low cost, which is the primary reason for outsourcing to India. The COVID-19 pandemic worsened the data security for outsourcing companies in India.

india outsourcing

Typically, this entails functions, tasks, operations and activities that are non-core to your business. Half of all Fortune 500 firms prefer to outsource to Indian software companies as per findings by the National Association of Software & Service Companies (NASSCOM). They can relate to almost all Western cultures, an excellent customer service feature.

India boasts of the best in Infrastructure and technology

Time zones can be a problem, especially for urgent cases, as some offshore teams can sometimes take over 24 hours to fix a single issue. The Indian government has also invested in infrastructure and technology to reflect international standards. But here we have also discussed what are the disadvantages if a company decided to outsource their work to India. The 2021 Global Services Location Index (GSLI) overall country rankings indicate that, at a regional level, Asia continues to dominate the index. India, China, Malaysia, and Indonesia hold the first four spots in the global services value chain again this year. Additionally, Vietnam, Philippines, and Thailand also continue to maintain their foothold in the top 10 rankings.

With a global clientele spanning diverse industries, Bacancy Technology has established itself as a trusted partner for businesses seeking innovative technology solutions. Their team of skilled professionals excels in various domains, including web and mobile app development, blockchain technology, AI and machine learning, and more. The One Technologies is a renowned IT outsourcing company that offers a wide array of services, ranging from web and mobile app development to software testing and digital marketing. With a team of experienced professionals, One Technologies delivers cost-effective solutions tailored to meet the unique requirements of businesses.

The Current Condition of the Top 50 BPOs in India

Enterprises all over the world have put their trust in Indian IT outsourcing companies to meet their technological needs. Whether it’s product engineering, building digital experiences, growth hacking their way to success, or full-fledged digital transformation, Indian IT companies have excelled at providing unrivalled services. DataPowerHub is specialized in any type of data related and internet research services such as data entry, data processing, data mining, data management, internet and web research. If they don’t maintain 100% accuracy, they mentioned they will give you double the money you paid for their services. These are high-end services for which you need to understand the nature of business and process large volumes of information.

You also benefit from reduced startup cost due to the availability of ready outsourcing infrastructure in India. For example, you don’t have to set up any equipment or technology to perform your IT tasks — the service provider will already have it. Typically, service providers are companies who have dedicated staff to perform the task. This company strives to solve business challenges for its clients by employing technologies that are shaping the world today. Moreover, CDN also offers free support for upto 6 months for any non-functional bugs after the delivery of the project.

The Indian government has policies that are beneficial to the IT industry. The Information Technology Act and other IT laws in India promote the growth of the IT industry and make it easier for foreign firms to engage with an Indian IT outsourcing services company. It is the process of having work completed by a third-party provider in a nearby country at a comparable timezone. Nearshoring, like onshoring, ensures fewer cultural differences; yet, when compared to offshore, nearshoring costs more.

It is the process through which a company relocates certain business tasks to another country. Another type of outsourcing occurs when a corporation partners with a third-party offshore enterprise. The offshoring firm provides infrastructure, support, and offshore resources/teams that work directly with the client. Because of a dearth of IT specialists in the local market, offshoring is most common in the IT industry. The practice of contracting out services or work tasks to a third party, providing the service of custom software solutions is referred to as outsourcing.

Derek Gallimore has been in business for 20 years, outsourcing for over eight years, and has been living in Manila (the heart of global outsourcing) since 2014. Derek is the founder and CEO of Outsource Accelerator, and is regarded as a leading expert on all things outsourcing. Some companies in developed countries also opt to outsource to Poland since the time difference is acceptable.

Center caters to suppliers, customers, branches, and other technology centers worldwide. Larry Ellison, CEO of Oracle, said that English language skills have been critical in developing the service Is Capital Debit or Credit sector in India. However, India’s communication problems have long been inflicting its BPO industry. India has many dialects, and perfecting their speech clarity in English is challenging.

India annually adds an average of 1.5 million software developers to its population. With 2500 engineering colleges, 1400 polytechnics, and 200 schools of planning and architecture, India has strategically invested in growing its tech talent to become the world’s outsourcing hub. Experts say that 30-40% of technology jobs lost globally may be outsourced to India. Many companies are reassessing their business strategies in light of the global economic downturn and challenges experienced by leading economies. Besides India, there are also other players in the outsourcing industry.


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