Outsourcing to INDIA

Outsourcing to INDIA: A Comprehensive Guide for Small Business Owners 

When it comes to outsourcing destinations, there is one country that you must never leave out of your shortlist. India is one of the top resources for outsourcing and is especially known for their IT and Software Development services. Are you curious about what makes India one of the best outsourcing destinations in the world? Then read on below! 

India is the world’s largest democracy with a population of over 1.2 billion. It has emerged as one of the fastest-growing economies in the world even with supply line disruptions, a rise in geopolitical tensions, and inflation. The country’s growth is largely boosted by monetary and fiscal policies, domestic demand, and strong investment activity. There is also an active effort to promote ease of doing business in India. 

By 2024, India is sure to have cemented its place as one of the tech leaders in the world. With cost-effective and high-quality services, there is no wonder why India is also a top outsourcing destination. In addition, they are also known for being efficient in handling most services you would require in outsourcing. 

Outsourcing Factors in India You Need to Consider 

1. Cost-Effective 

Cost-effectiveness is one of the primary reasons why India is such an attractive outsourcing destination. Compared to its American and European counterparts, outsourcing software services to India could be 30-35% cheaper. Offshore outsourcing centers also offer fixed hourly or monthly prices. This saves on operational expenses for most foreign companies.  

India’s large population and lost cost of living mean a lower cost of labor. For comparison, a developer abroad can earn about 50-80 USD hourly while an Indian developer earns a minimum of 15 USD in that same hour. For a company looking to reduce expenses, outsourcing to India is one of the best budgeting strategies they could do.  

2. Great Communication 

The Indian outsourcing industry prides itself on maintaining positive communication. Having open communication with their clients guarantees good results and lessens mistakes. Therefore, they have sufficient infrastructure to facilitate all their business needs. With good band connectivity, there are no connection hurdles that can get in the way of a successful outsourcing venture in India.  

To further strengthen communication and prevent misunderstandings, there should be little to no language barriers. In India, this is barely a problem since most of the Indian workforce speaks fluent English. This is possible because the medium of instruction for most higher education institutions is English. In fact, India recorded around 200 million English speakers — the second in the world, only behind the USA. 

3. Skilled Talent Pool 

With its large population, the number of skilled workers is guaranteed in India. The country’s talent pool increases each year and about 3.1 million graduates are added — all of which come from colleges and universities with various specializations. Talented workers are brought on to companies to provide high-quality service without high fees. 

It is predicted that India will become the world’s largest IT hub because of its large number of software developers. About 75% of the world’s digital talents are estimated to be residents of India. This is seen to increase since more than 2 million workers are upskilling to continue developing their IT skills with the support of the National Association of Software Service Companies (NASSCOM).  

4. High-Quality Services 

With a talented and inexpensive workforce, you can also expect high-quality services when outsourcing to India. The country’s talents have access to advanced infrastructure, software, and technology to deliver what their clients ask from them. India’s workforce is also up-to-date on the latest trends and business practices required in various markets. 

Indian outsourcing companies also follow international standard practices. This includes the Capability Maturing Model (CMM) which can assess the capability of a company’s processes to implement and execute projects. In fact, India houses over 75% of CMM Level 5 certified companies.  

5. Leader in IT Services 

India is unparalleled when it comes to its IT workforce. As mentioned above, India is about to be the world’s largest IT hub due to its large number of software developers. The country’s IT industry is also robust with various IT services and offerings. The government also supports this development since they continue developing infrastructure devoted to their IT industry. 

Every year, over 200,000 graduates go into India’s IT industry resulting in the country having a young IT workforce. This workforce is the key to India’s continuous success in the IT field. Moreover, the Indian IT industry continues to expand with offered services even in Latin America. 

Notable Industries in India 

India’s outsourcing industry offers diverse services, but the most popular is IT services. The country’s IT workforce is one of the biggest in the world. Often, India is the go-to outsourcing destination for many companies when it comes to their IT needs. The Indian IT talents are well-versed in website development, software development, and technical support.  

India counts the Iron and Steel industry as one of its major industries. The country is a part of the world’s top 10 producers of iron and steel. The industry is credited as the backbone of India’s modern industrial economy as it is where most industries depend on for machinery. It is also an essential part of the infrastructure that makes up the modern Indian industries. 

Aside from those mentioned above, the major industries in India are: 

  • Construction 
  • Automobiles 
  • Manufacturing 
  • Telecommunication Services 
  • Financial Services 

Outsourcing Challenges in India 

As the leading outsourcing destination, you may think that India is the perfect place to outsource your business functions. However, like most destinations, you could still encounter difficulties when outsourcing to India. One such hurdle is possible communication difficulties. True, the Indian workforce is proficient in English and they have the necessary infrastructure to support their work, but the time zone differences could prove to be challenging. Your team would often be asleep while you conduct business so it may be hard to get real-time updates. 

There are also possible breaches in privacy and data laws. Projects are often sold to many companies and it would be hard to guarantee originality. But these can be avoided as long as you stay vigilant. The contract that you sign with your outsourcing partner must clearly outline your demands and requests to protect your projects.  

Outsourcing in India 

There’s a reason why India always has a place in the world’s top outsourcing destinations. The country boasts a talented workforce, a huge focus on the IT industry, high-quality services, and easy communication. Choosing India to outsource your business functions would be worth it — especially if you require IT services.  

Outsourcing in India can be such a breeze. Let us help you out so that you can start outsourcing soon! 

Book a FREE appointment with Outsource Asia experts today. 


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