Why IT Outsourcing to India is so Popular

 

When it comes to singling out the most popular destination for IT outsourcing, one name very well stands out of the rest India! In all its glory India in the past three years has become the most popular destination for IT outsourcing with more that 230 fortune 1000 companies using its outsourcing services. So what is it that gives India its popularity? Let's look at some major factors.

Major factors making India a popular IT outsourcing destination

Skilled workforce in India

India is brimming with knowledge and has in abundance English speaking, hard working and technologically strong, computer literate workforce that not many countries can boast of. This plays a major role in making India the most sought after outsourcing destination.

High Cost efficiency of IT outsourcing

India offers a competitive low cost work force along with extremely low set up costs and services to avail, owing to the wide difference between the personal costs in India and that of developed countries. IT outsourcing to India offers considerable economical benefits for those who are prepared to exploit the advantages of outsourcing. Also, India's technologies offer excellent software solutions. The applications include E-commerce, Business Process re-engineering, System Migration, Maintaining Legacy system, System integration etc. India prides in outsourcing facilities that are required to compete with others; which is yet another reason as to why the world prefers It outsourcing to India.

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Better communication facilities

India is a technologically advanced country and has excellent communication network in the form of telephones, cell phone networks and internet service providers. This enables the companies to be in constant touch with their Indian counterparts which is very important in offshore outsourcing. Excellent telecom, ISP, and cellular networks are available in all cities & towns in the country. India prides in the reliable satellite and submarine communication links that facilitate good broadband connectivity with the rest of the world. Thus companies engaged in IT outsourcing to India, can be in touch with the vendors without any connection hurdles. This plays a significant role in determining the success of offshore IT outsourcing to India.

India's human resources

Being the world's second highly populated country, human resources are a boon by itself. Just as the Gulf is renowned for its natural resource of crude oil, and South Africa for its diamonds, India is proud of the abundance and easy availability of its highly qualified and technically skilled English speaking computer professionals; who are key to success in the field of IT outsourcing to India.
 

Technologically advanced outsourcing firms in India

India's technology firms offer excellent software solutions. The applications include E-commerce, Business Process re-engineering, System Migration, Maintaining Legacy system, System integration etc. These firms are governed by quality organizations like ISO 9000, SEI-CMM Model, People Capability Maturity Model (People-CMM) and the CMM Model.

Standard quality that firms doing IT outsourcing in India guarantee

The Indian companies involved in IT outsourcing in India provide high quality work, meeting international standards and complying with the ISO & SEI-CMM standards. Three out of every four SEI-CMM 5 companies worldwide is located in India. Thus India promises quality - IT outsourcing in India as it has the potential to furnish these services perfectly.

Fast growing economy

Indian economy is fast growing and is advancing at a major pace especially in the technology department. Indian companies export software to more than 95 different countries and stands second in terms of software exports that comes as a proof of India's technological advancement.

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Stable government

India has a stable pro – IT government at the center that makes an active effort to provide an investment friendly atmosphere at the same time improving communications, infrastructure and aiding technological advancement. India in addition has extremely investor friendly laws and a well laid tax system. India has a stable pro - IT government whose policies, economy, GDP growth, taxation, power, telecom, industrial parks & special zones have been helpful in improving the infrastructure as well as communication. The government proves to be a great support for software firms by further providing all the basic facilities required for an outsourcing company to flourish thus playing a major role in contributing to the success and well-being of IT outsourcing to India.

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Better Infrastructure

India can offer companies with a better infrastructure in the form of better and cheaper resources, better connectivity, faster communications, cheaper costs, power and developed technology. Another main reason why IT outsourcing to India is increasing. India has a stable pro - IT government whose policies, economy, GDP growth, taxation, power, telecom, industrial parks & special zones have been helpful in improving the infrastructure as well as communication. The government proves to be a great support for software firms by further providing all the basic facilities required for an outsourcing company to flourish thus playing a major role in contributing to the success and well-being of IT outsourcing to India.

Indian government policies

  1. IT is regarded as one of the top 5 priority industries in India. IT is a part of the national agenda, and policies are framed so as to obtain maximum benefit out of IT outsourcing to India.
  2. The liberalization and deregulation initiatives taken by the government are aimed at supporting growth & integration with the global economy. These reforms have enabled the entry of foreign companies to the Indian market. FDI investment from NRI's including Overseas Corporate Bodies (OCB's); owned by the NRI's are warmly welcomed in India.
  3. The new National Telecom Policy has invited private participants to the Indian telecom sector.

  4. The IT bill passed in 2000, gives a legal framework for the recognition of electronic contracts, prevention of computer crime and electronic filing of documents. NASSCOM along with the government is playing a notable role in protecting the interests of the IT sector. Thus with all these help, IT outsourcing to India has reached a point of no turning back.

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The Bigger Picture

With all these factors aiding India it is no wonder the world's most popular Outsourcing destination in comparison to other even cheaper nations. Of course what needs to be seen now; is as to how long will the party last? But as of now going by the details, India is here to stay as a popular destination for IT outsourcing for a long time to come.

 

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