Advantages of outsourcing to India

When it comes to outsourcing, India is preferred over other countries mainly due to cost reduction factor, quality of service, availability of skilled man power in India etc. This article talks about the advantages of outsourcing to India.

Advantages of outsourcing to India

India is preferred over other countries when it comes to outsourcing of jobs and services. First of all let us see what is outsourcing and then discuss about the advantages of outsourcing to India.

What is outsourcing?

The total job market in the world has changed with globalization. One of the important outcome of this globalization is "outsourcing of jobs and services" to other countries. Let us see what is outsourcing. Outsourcing is nothing but having contract with another company to do a particular job or function. Now a days almost each and every company is outsourcing in one or other way. Normally the function that is being outsourced is considered as non-core to their business. Let us now see what are the advantages of outsourcing to India.

Benefits of outsourcing to India

Outsourcing has become common now a days in this globalization world. When it comes to outsourcing the whole world is thinking of outsourcing to India. The number of global organizations choosing outsourcing to India is increasing day by day. There are a number of reasons why so many organizations are choosing to outsource to India. Some of the reasons for outsourcing are cost-effective services, increase in efficiency, reduced operating costs, improved quality, increased productivity, more time to focus on core work. These are some of the reasons for choosing outsourcing the jobs and services. But more and more organizations are choosing outsourcing to India. What is the reason to outsource to India? India is the most ideal place for outsourcing as there are many advantages of outsourcing to India. India is called as the world's outsourcing hub. Outsourcing to India can help any organization from high quality services, cost effective services, reduced operating costs, greater flexibility and many more.

Let us see what are the advantages of outsourcing to India. Here are some advantages of outsourcing to India.

Cost effective services

One of the reasons why global organizations are outsourcing to India is because India offers cost effective services. The organizations can save lot of money by outsourcing to India. Nearly 60 to 70% of the operating costs of companies can be saved by outsourcing to India. There are large number of educated, technically skilled man power in India and is growing year by year. There are large number of highly skilled professionals in India which is very rare in western world. This enables India to provide cost effective services to other countries without compromising on the quality of service. So you can save operating costs, while increasing productivity, quality and efficiency by outsourcing to India.

Time zone advantage

The time zone advantage between India and other countries like US and UK is also another important factors for companies to choose outsourcing to India. The night time in USA will be day time in India. With this advantage, the outsourcing partner in India can complete all the critical work and send it back to USA on the next day. So the work is continued by the outsourcing partner in India even when the company employees in USA go home after office hours. This will allow the work to be completed faster and gives the business an advantage. This will increase the delivery time. Hence the time zone advantage between India and USA has increase the job outsourcing to India.

High quality services from India

The outsourcing companies in India have the latest software, and technologies to provide solutions to the global organizations. It is proven that India is technically superior compared to other countries providing outsourcing solutions. So it can be assured that if you are outsourcing to India, the best technology and software will be used for your services. There are huge number of highly skilled, talented, educated and English-speaking and computer literate man power in India. Hence outsourcing to India can guarantee high quality of services.

Better infrastructure in terms of communications

Lot of improvements have taken place in the area of communications in India. So the distance is no barrier between two organizations. The advances in calling, emailing, chatting have made the communications an important factor for outsourcing to India. It is also possible for having video conferences so that people can see each other even though they are thousands of miles apart. Due to these improvements in communications, the outsourcing companies in India can send the completed work to other companies in USA for review many times in a day and the work can go back and forth very easily. This is another reason why outsourcing to India is advantageous.

Cheap human resources

The people in India work for lesser salaries when compared to salaries that are being paid to people in USA or other countries for the same work. And the salary that people earn in outsourcing is much more than the salary that they can earn else where in India. The large number of skilled human resources in India has enabled India to cater to the needs of large volumes of job outsourcing. So India is capable of meeting any amount of work of job outsourcing with the readily available large pool of highly skilled human resources. The human resources in India are highly skilled, talented, highly educated and can work for very lesser salaries compared to other countries. Hence this advantage of India has attracted a huge amount of job outsourcing to India.

More number of English speaking people

India has highest number of English speaking people compared to other developing countries. Indians are taught English language right from their childhood in their schools. Indians start conversing in English right from their school days. This is another advantage to India for outsourcing because Indians can easily talk to their counterparts in USA and other countries through English language with internet as medium. Many of the English medium schools in India also teach foreign languages like French, German, Spanish to their students. This is also an advantage for outsourcing to India.

Stable Government in India

India has the world's most stable government and has celebrated more than 60 years of democracy. Indian government has taken up development of IT sector as the top priority. The Indian government has a separate ministry of information technology which quickly approves the implementation of IT projects. Government of India provides complete support to the IT and ITES industry. A number of high-tech IT parks were built in different cities like Bangalore, Chennai, Mumbai, New Delhi, Hyderabad etc. These high tech IT parks has the best infrastructure and technology. The economy of India is also growing at a greater pace which is also an advantage for companies to outsource to India.

These are some of the reasons why outsourcing to India is advantageous.

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Author: Vijayalakshmi G M11 Nov 2011 Member Level: Gold   Points : 0

Hi Raghav,

1. It is really a very good Article.
2. It explains all the aspects of the outsourcing business.
3. Advantages of outsourcing the jobs to India.

Author: Atul Sharma13 Nov 2011 Member Level: Silver   Points : 0

hi dear this really good and beneficial for outsourcing

Author: Phagu Mahato23 Oct 2013 Member Level: Gold   Points : 1

One of the biggest advantages of outsourcing to India (or any other location) is cost savings. The lower cost of operation and labor makes it attractive to outsource.
Apart from cost effectiveness, there are certain pertinent advantages of outsourcing. This includes primarily locating skilled resources and getting quality work done coupled with improved process efficiency.
Cost-cutting may not be the only reason to outsource, but it's certainly a major factor. Outsourcing converts fixed costs into variable costs, releases capital for investment elsewhere in your business, and allows you to avoid large expenditures in the early stages of your business. Outsourcing can also make your firm more attractive to investors, since you're able to pump more capital directly into revenue-producing activities.
The time zone difference between Asian countries and the West, you can get your work done while your business closes down in the evening. This is especially beneficial for companies in the service industry that need to provide round-the-clock customer support.
Get access to specialized services By outsourcing you can get expert and skilled services. This benefit of outsourcing has been the key reason why several outsourcers opt for outsourcing.
Improved customer satisfaction With timely deliveries and high-quality servicesImproved customer satisfaction With timely deliveries and high-quality services you can impress your customers. Outsourcing can help you benefit from increased customer satisfaction and your customers will remain loyal to your organization.
There are other important factors that contribute towards the continuous growth of the outsourcing to India. Proficiency in English is a major factor that motivates a much higher intake of Indian talent.
IT is regarded as one of the top five 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.
Businesses have limited resources, and every manager has limited time and attention. Outsourcing can help your business stay focused on your core business.
Companies that do everything themselves have much higher research, development, marketing, and distribution expenses, all of which must be passed on to customers. An outside provider's cost structure and economy of scale can give your firm an important competitive advantage.
When certain functions are outsourced, companies also distribute or do away with the risks associated with running that particular function. For instance, if payroll management is eating up your operational time and money, outsourcing it to a payroll services provider gives you the freedom to focus your concentration on other core activities of the business.
Because you save time and energy with outsourcing, you can focus on growing your business. You can meet with important clients, attend seminars, find potential partners and network as well as tend to the management of your business. If you’re strong at marketing and networking, then why not go for broke and concentrate on these to build your business. Outsource your weakest areas to those who are already strong in them.
Scheduling multiple projects at once allows a project manager to use expensive or limited resources efficiently. This also allows him to prioritize project work more effectively, based on resource usage requirements. When scheduling multiple projects, the total sum of tasks reflects all projects. Each individual project gets treated as a subproject, with multiple starts and finishes in the network. This makes it easier for the project manager to handle all projects consistently.

Author: Phagu Mahato21 Nov 2013 Member Level: Gold   Points : 4

Outsourcing as an inspiration isn't novice; it's been for over m years currently, the sole distinction being that it's gaining ton additional quality since a decade for no matter reasons. Outsourcing essentially means that asking a third-party seller to figure for you on a written agreement basis. firms source primarily to chop prices. But today, it's not solely regarding cutting price however additionally regarding reaping the advantages of strategic outsourcing like accessing adept experience, reducing overhead, versatile staffing, and increasing potency, reducing work time and eventually generating additional profit.
Benefits of Outsourcing

The geographical zone distinction between Asian cone among entries and also the West, you'll be able to get your work done whereas your business closes down within the evening. this is often particularly useful for firms within the industry that require to produce continuous client support.
Get access to specialized services By outsourcing you'll be able to get professional and adept services. This advantage of outsourcing has been the key reason why many outsources decide on outsourcing.

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