Why outsourcing business to India



India started becoming a global outsourcing hub in the 1990's when companies first realised the huge advantages of outsource to India given the comparatively low salaries prevalent in India and the huge reservoir of skilled manpower available. Add to this the Indian proficiency in English, its colonial language, and India offered an unbeatable package over other outsourcing destinations like China.


However it wasn't all smooth sailing for India. According to David Wood, Otis director, India had terrible infrastructure including nearly non-existent telecommunications in the early 1990's and roads felt like craters. But as India progressed due to investor friendly policies and cutting down red tape the Indian outsourcing industry also responded to the changing times.

  • Clearly India is most preferred for IT outsourcing enabling company managements to cut down on software development and maintenance expenditure, effectively meet up's and down's of software demands while focusing on the core work. Various studies and surveys point out that about 50% to 75% of all Fortune-500 companies are already outsourcing to India and this trend is only likely to rise. In fact at one time the cost advantage of off shoring work to India was 1:6, i.e. a company saved as much as 60% on labour and other charges, enough to leave any CFO salivating.

  • Cities like Bangalore, Hyderabad, Mumbai, Delhi, Pune, and Chennai have emerged as outsourcing capitals of the world and even relatively unknown cities like Mysore, Chandigarg, and Gurgaon are catching up with their more illustrious city cousins thanks to companies like Infosys, TCS, Wipro and many others that have up set up offices in these cities.

Outsourcing businesses are facing challenges increased competition, high overhead, changing markets and operational inefficiencies, and increased outsourcing customer demands. In this scenario of outsourcing businesses monitoring are forced to adopt systems and business models that provide operational efficiency and add strategic value to their products and services.

  • India with its huge talent pool is the most preferred destination for Business Process Outsourcing. Besides the huge talent pool other factors that attract many multinational companies to outsource business to India are the favorable government regulations supporting R and D IT facilities, cost savings and strong research infrastructure. When compared to others in the outsourcing business industry, India stands a step above in terms of better communication facilities and matured development processes.

  • Outsourcing to India enables global business

    Professional outsourcing business firms in India are equipped with state-of-the-art infrastructure, innovative technology, and professional expertise to handle custom projects in their branch of specialization. As a result, the clients are not only benefited from making costly investment on costly infrastructure and people competencies, but also getting professional expertise and highly qualified young talents at a price most of the developed countries cannot offer. In outsourcing firms in India, high-caliber subject-matter experts are brought in to design and manage projects involving meticulous, critical, and high-end processes.

  • Outsource to India enables global business to effectively contain the expenses associated with handling non-core functions and concentrate their resources in other areas. Clients will not have to spend any more on advanced tools and skilled workforce to fulfill their needs. Outsourcing to India implies the best in quality and cost savings.

Outsource to India...Read More
Companies Outsourcing to India...Read More
The Top Outsourcing companies in India...Read More


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