What is outsourcing:-
Outsourcing is an agreement with another company to do their work with low cost. It can also be described as an arrangement in which one company provides services to another company.
Outsourcing is more popular and common in information Technology industry. In Information Technology industry, sometimes entire company operations starting from planning, analysis, installation, maintenances, servicing of hardware and network will b e outsourced.
Advantages of outsourcing to India:-
1. Operation Cost:-
One of the most important reasons for outsourcing to India is cost effectiveness. India offers low cost operational cost. This is possible because of cheap labour cost in India compared to western countries and highly educated and talented people pool in India. Another reason for cost effectiveness is due to low cost infrastructure maintenance.
2. Quality of service:-
India is having highly talented, technically skilled, computer literate resources, so this allows companies in India to provide high quality service to the outsourced company. Normally Indian outsourcing companies use latest hardware and software to give good service to their client. Large English speaking population in India encourages companies around the world to outsource the project to India without any fear of communication barrier.
3. Location Advantage:-
Most of the outsourcing projects to India are from United States or from European countries. Time difference between the countries allows Indian companies to complete the task before people from US and European countries come into work. This increases the productivity without breaking the operation.
4. Business advantage:-
Another major advantage of outsourcing to India is that company can concentrate more on their main business by giving non-core business to the third party. This allows companies to focus on their main objective of their business.
5. Increased productivity:-
Outsourcing to India will increase the productivity of the company. Apart from the outsourcing benefit increased focus on companies' core-business will allow the management to reap more from their business.
What is outsourcing:-