Why do Companies Outsource to India?

Outsourcing has remained a popular choice of developed nations for the past few decades. Thanks to the low cost factor with higher returns, more and more nations have adopted it as an important business decision across the world. India has remained a pool of talents and skilled human resources, which has made this country a favourite destination for many developed nations. India has premier educational institutions and every year the country produces 3.1 million graduates, which are added every year to the current workforce. It’s not just the numbers that impresses the companies in the west but also the quality that comes from these talents. The workforce from India have all the talents and creativity that are combined together to carry out the business perfectly and with professionalism. Well, let’s check the reasons why the companies outsource their work to India in the following paragraphs:

Easy Talent Acquisition and Massive Amounts of Professionals

India ranks second when it comes to the highly populated nations in the world. It has a vast pool of technically sound and skilled professionals from a younger age group. This has made the country count among the largest talent pools all across the globe. More and more youngsters are attracted towards becoming mobile or web app developers. In other words, it has remained a lucrative career choice for the youngsters in the country. As per the reports of C SharpCorner, by the end of 2023, India would emerge as the largest destination hub of software developers all across the globe. A majority of these software developers are better armed with the much needed KSAs and help companies in the west to achieve their required trade objectives.

In the coming years, India is going to add around 100 million human resources to its current workforce. The easy availability and ample of resources in the country propel a number of companies in the west to outsource their work to India. Indian workforce engaged with different companies are able to cater only because they are able to cater to their client’s (from the west) business requirements. Plus, they have the potential of keeping abreast with the newer technologies embarking with creative and competitive solutions. The workforce in India are smart enough in learning and getting an edge on modern technology and giving their clients advanced level solutions.


Outsourcing is a Budget-Friendly Option in India 

One of the key reasons for the western nations to outsource their work to India is the cost factor. India being a cost effective country gives many the enticing reasons why a number of other nations prefer outsourcing in this country. They are able to get things done at a cost of 35 percent less when compared to the US and Europe. On an average, the salary of an employee working in India for an overseas company is 20 to 40 USD per hour as compared to the ones based in the US with 100 to 150 USD per hour.  The difference is huge. 

A majority of the offshore companies in India involved in software development and other works offer their clients in the west on an hourly or a fixed monthly costs, which is easy for them to choose. The companies in the west save up to 65 percent of their operational costs, which further increases their revenue. In this way, the companies outsourcing their work to India end up saving a lot and in return do get quality, which makes India their favourite destination for outsourcing.

Credibility and High Quality Yardsticks 

One of the biggest reasons why more and more companies are preferring India for outsourcing their work is the high quality work they get. The Indian workforce dealing with their services meet international standards. As per NASSCOM, the Indian IT and ITES companies have generated a revenue of not less than 150 Billion USD in 2017 and the coming years have witnessed a hike of 40 percent. This is expected to surge in the coming years when it comes to meeting their advanced needs and requirements. 

In India, there are different quality organizations that have set high standards in work. These include groups like ISO or Indian Standard Organization, CMM or Capability Maturing Model and similar other groups keep a watch on quality checks, which has ensured quality work from the Indian workforce. In other words, the above certifications and standards that the Indian workforce lay down huge stress on quality, which end up attracting more companies in the west to outsource their work,

Effective Communication 

Communication is often a key thing when it comes to growing any business. It helps in growing and maintaining a strong relationship with the firm. At the same time, good communication remains the foundation of any beginning, managing and growing a strong kind of business relationships between companies.  At the same time, effective communication assures good results and helps us resolve the issues.  

As per a survey around 350 million of the population all across India speak good English India. This makes this country the second most popular place in the world to speak this language after the US. As per a BBC report, India is expected to add a good population in the coming years as well. This is the reason why communication is not a hurdle in India and that has also played an important role in making western and other nations. 

Effective Time Zone Difference 

India being in the east has a huge time difference, but the country has managed to overcome this problem by beating the time zone by working even at the odd hours. This has given a number of companies in the west to outsource their work to Indian companies. The 12 hours of difference between the two nations helps in offering greater efficiency in the west. This helps in boosting up the productivity thus allowing you more focus over their crucial jobs.


Wrapping up 

Over the years, we have seen a number of companies in the west have come forward to outsource their work to Indian companies. Despite the difference in time zones and other issues, Indian workforce has proved the fact that they can turn things around thus becoming the favourite destination for all.

This post was created with our nice and easy submission form. Create your post!

What do you think?

Written by Christhu

Leave a Reply

Your email address will not be published. Required fields are marked *

GIPHY App Key not set. Please check settings

Everything to know about Gold

UPSC Preparation Month wise Detailed Strategy to Crack IAS Exam