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Outsourcing is increasingly becoming a proven tool to improve operational efficiencies. Besides its cost-saving benefit, outsourcing enables organizations to direct their valuable time and resources on their core competencies, while the non-core functions get taken care of by expert outsourcing associates. It’s not just a way to save money, but it’s seen as a creative tool in innovation so as to gain access to world-class capabilities.
The common services that companies seek to outsource include website and application development, data entry, customer support, book-keeping and accountancy, etc.
Why is India a great choice for outsourcing?
Despite any reservation about outsourcing work to India, or outsourcing of jobs to India, according to a recent survey, India has been ranked as the top outsourcing destination out of a pool of 55 countries. The benefits of outsourcing work to India cannot be ignored. Business process outsourcing to India remains a
With stiff competition from several other countries like China, Malaysia, Brazil, Indonesia, Thailand, Philippines, Mexico, etc., India has maintained a robust performance in the outsourcing industry for many years in a row now. The major contributors that set India apart are:
- A large pool of talented human resources: India has a huge pool of manpower with millions of graduates and specialized postgraduates passing out of colleges and universities every year. This presents tremendous a recruitment platform for the consultancy and outsourcing firms in India.
- Cost-efficiency: The cost of labor in countries like the U.S. or the U.K. is higher because of their higher cost of living, whereas in India, you can cut down on your cost of labor significantly, without compromising on the quality of work.
- Rapidly developing infrastructure: The Planning Commission of India gives high priority to the transport and the construction sector. Many projects have been undertaken to rapidly build sound infrastructure in the country with respect to roads, railways, road transport, shipping, ports, inland water transport, and civil aviation. This has led to improved connectivity in the country facilitating smooth functioning of trade and commerce.
- Pro-business environment: The government policies with respect to ease of doing business have improved tremendously. For example, in the manufacturing sector, reduction in the income tax rates has come as a big relief for companies with a turnover of up to USD 38.75 million. The Goods and Services Tax (GST) is yet another pro-business initiative by the government to replace an old and complicated tax regime with a new unified system of levying a one-time tax on all goods and services throughout the country.
- English-language proficiency: In outsourcing, one of the biggest hurdles is overcoming cultural and linguistic barriers. However, that shall not be a concern when you outsource work to India, as most of the Indian working professionals possess a strong command over the English language especially if compared to other competing countries.
- Time Zone advantage: The IST (Indian Standard Time) is ahead of the time zones of the western countries. This is huge because outsourcing your work to India can put your business operations a few hours ahead of your competitors’. On of top that, your business operations will continue to work while you go to bed.
- Business experience in India is an advantage: Indian companies have to manage a wide geography, a wider distribution network and logistics and consider a diverse range of customers, different languages and cultures, ensure mobility of manpower, etc. This gives the Indian companies a significant edge over their Asian counterparts.
- Competent outsourcing companies in India: The level of competition in the field of outsourcing in India is tremendous with companies trying to outperform one another for good. India has many established players in the outsourcing industry having years of experience in outsourcing and consulting catering to a wide range of industries. There are companies like TCS, Wipro, Infosys, Accenture, etc. who tops the list and can provide high-end services to big companies. Then, there are many upcoming companies that are quickly earning a reputation for competence, aggregating fresh talent, and providing innovative outsourcing solutions at competitive prices. Some of the companies cruising into this list are Invensis, Flatworld Solutions, Classic Informatics, and Business Process Xperts (BPX).