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In a recent survey, 80% of European and US outsourcing firms ranked India as their number one outsourcing destination. The National Association of Software & Service Companies (NASSCOM) also reported that almost half of all Fortune 500 companies choose to outsource software development to Indian outsourcing firms. Even though many other countries (including China, Mexico, Ireland and the Philippines) have emerged as major competitors, India has managed to outmaneuver all others and emerge as the top outsourcing destination. Read our well researched article on - Preferred Outsourcing Destination - India or Philippines, to know how India fares in comparison to Philippines. Major differentiators such as certain favorable government policies, fast-developing infrastructure, and an immensely talented work force are responsible for the Indian IT outsourcing industry continuing to experience a tremendous growth rate of 25–30% per year. Read on to find out more about why India remains the ultimate outsourcing destination.
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India remains unmatched when it comes to its vast pool of skilled and talented human resources. The country has a population of over 1.2 billion people and around 3.1 million graduates are added to the workforce each year. India also holds the distinction of being the largest English speaking nation in the world, larger even than the US and UK combined. Apart from the vast numbers, is the quality of talent that attracts companies wishing to outsource. "The attraction of India for us was not only numbers but, more importantly, the quality of the talent. We've taken on people who are innovative and creative and can really contribute to the business," says Tom Hyde, STI Upstream business manager (Shell), on why their company choose India among other countries for their outsourcing needs.
The number one reason why India remains a top outsourcing provider is due to the significant cost savings that companies can achieve. This is mainly because of the wide gap that exists between personnel costs in India and that of the developed countries. For example, a good developer in the U.S. can cost anywhere from $50 to $80 an hour (for a full-time staffer depending on skills and experience). In comparison, the hourly cost of a developer in India can be negotiated down to as low as $15 per hour. This pricing flexibility allows companies the freedom and creativity in managing their budget and helps them reap large profits.
While the cost factor plays a huge role in outsourcing, the consistently high quality provided by Indian outsourcing firms has also enabled India to remain as the top outsourcing destination. The National Outsourcing Association (NOA), in its Annual Offshore Outsourcing Conference, reflected on the trend commonly seen among International companies who choose India as their preferred outsourcing destination. "Cost reduction was only part of the reason that companies were considering offshore outsourcing, there were benefits to be had in time-to-market and quality, leading to an adage that companies initially chose India to save costs but stayed for the speed and quality!"
Modern India is well-developed and offers state-of-the-art telecom, ISP, and cellular networks in all major cities and towns. Clients are offered the latest and best in software technology, including customized solutions for various applications such as e-commerce, business process re-engineering, system migration, legacy system maintenance, system integration, and much more. Outsourcing companies also maintain uninterrupted communication channels with clients by providing high-speed bandwidth via satellite connectivity, submarine cables and fiber optic networks.
The Indian outsourcing industry is supported by a stable pro-IT government whose policies on the economy, GDP growth, taxation, power, telecom, industrial parks and special zones have been helpful in improving infrastructure as well as communications systems. IT is regarded as one of the top 5 priority industries in India, and the government has framed policies to obtain maximum benefit from IT outsourcing to India. The government has offered its support to the IT industry by providing various tax-related and other benefits and by enacting the Information Technology Act, which recognizes electronic contracts, bars cybercrime, and supports e-filing of documents.
Indian outsourcing companies are able to provide the quickest time-to-market due to the advantages gained by time zone differences. The 12-hour time difference between India and the USA provides companies with numerous opportunities for work to be completed earlier than expected, leading to greater efficiency, increased productivity and more time to focus on other crucial tasks. The time difference makes India an ideal option for clients who wish to outsource various service-related options, such as 24X7 Customer Support and Helpdesk services.
Outsourcing basically means asking a third-party vendor to work for you. Read the benefits of outsourcing.
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Outsource2india is a premium outsourcing company located in Bangalore. Established over a decade ago, the company offers a wide range of outsourcing services including Data Entry, Call Center services, Engineering services, Web Analytics, healthcare BPO, Software Development, Photo Editing, Creative Design and Research Services. Our services are cost-effective and can be customized to suit our client's specifications.
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