Disadvantages of outsourcing to India

People always discuss about advantages of outsourcing to India. But here I would like to discuss what are the disadvantages if a company decided to outsource thier work to India.

Disadvantages of outsourcing to India:-

In my earlier article I have discussed what are the advantages of outsourcing to India, but here I am discussing what all disadvantage a company may face if they decided to outsource thier work to India. Please find disadvantages of outsourcing to India and its points as follow;

1. Political disadvantage:-

Change in political nature in India and the policies of the government may impact the outsourcing partner adversely. Indian govt. policies are always influenced by the local political parties' attitude, so change in political environment in India has a major impact on Indian companies outsourcing policies.

2. Economic disadvantage:-

Current economic growth in India reduces the profit of the companies outsourcing to India. Change in exchange rate between the currencies will have a major impact in the profit sharing between outsourced and outsourcing companies.

3. Work culture:-

Difference in culture between the countries makes a major difference during outsourcing contract. Standard of work in India is totally different compared to western countries. Sometimes indian companies compromise in the quality to achieve the target this may impact the quality of the service.

4. Competition in outsourcing companies:-

There are huge numbers of companies in Indian market trying to get outsourcing contract from western countries. Due to high competition between the companies in India, some companies try to get contract by bidding the project by quoting low cost. This forces the companies to recruite less talented people by paying less salary and there by quality of the service will be impacted.

5. Time management:-

Unlike people from western countries Indian people give less importance to time. This may delay the work and there by impact the productivity.

6. Lack of communication skills:-

Good communication is one of the important component of the success in a business. Even though Indiaa have got highly talented and English speaking man power, lack of communication skill develop a gap between the client and outsourcing partner. This will sometimes generate wrong output.

7. Data security issues:-

Data Security is one of the common issues all the outsourced companies are facing nowadays after outsourcing their business to third party. Once a company outsource the business to a company then they won't have much control over the data. There are some instances in India that confidential data has been leaked from the companies who was providing service to thier outsourcing client.

8. People Management issues:-

Outsourcing companies will have less control over the people working from the outsourced companies. This sometimes forced them to work with people who are not much talented by compromising their work culture.

9. Location disadvantage:-

Due to the time difference between India and western countries when people work from their company Indian employees will be sleeping. So if there is any issue during their working time, they have to wait till next day to get it resolved. Even though most of the Indian companies provide on call support for the critical issues, working in the night will delay the process and reduce the output.

10. Copy right issues:-

Indian govt. is not having very strict rule towards copy rights. So sometimes companies may sell the product to outsourcing companies' competitors and this leads copy right violation of their product.


Author: Nicky Khunn18 Oct 2011 Member Level: Bronze   Points : 1

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Author: Reena15 May 2012 Member Level: Gold   Points : 0

This is really helpful information on Outsourcing to India.

Author: Saravana Perumal28 May 2012 Member Level: Silver   Points : 0

very good one....

Author: ketan Italiya29 Aug 2013 Member Level: Gold   Points : 0

This is the superb article

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