Job Outsourcing to India: Key Things You Need to Know About
In such a scenario, it makes more practical sense for organizations to outsource. Many businesses prefer to India outsource destination as the Indian software industry has skilled software developers and already has the required infrastructure ready. It offers a wide range of English-speaking skilled labor that no other low-cost countries can match. Kearney, India hosts more than 1,140 global in-house captive centers, which allow almost half of the top 500 global companies to work in India. The steady growth of the IT industry is clear in the upcoming years as businesses need innovation, agility, and operational flexibility.
However, even the promising outsourcing destination faces business downfalls. India has reported a 70% loss of voice and call center business to competitors like the Philippines and European countries. Lack of data security and a multi-linguistic approach are some challenges affecting India’s performance. Outsourcing enables companies to concentrate on their core competencies.
- Such factors have enabled India to provide quality solutions at a low cost.
- Experts say that 30-40% of technology jobs lost globally may be outsourced to India.
- Ensure the outsourcing company follows legal and regulatory requirements to avoid data infringement.
- The camaraderie and the sharing of ideas that can take place within the same environment cannot be done when the teams are oceans apart.
- The Indian digital and technology space is among the fastest-growing ones, compared to its other South East Asian counterparts.
Around the same time, its government began focusing on implementing programs for economic reform committed to liberalization and privatization. Foreign companies entered the Indian market due in large part to its liberalized investment policies. Many Indian companies have adapted international standards for their internal processes and practices. The telecommunication industry, which was once controlled by the government, grew when commercial players began to participate. This resulted in advancements in technology and communication including the introduction of IP telephony which enabled easier and more efficient international communication. This movement led to economic growth, which the country’s outsourcing industry benefited from.
With the momentum of globalization, the world is shrinking into an ever-more familiar village environment. A direct result of this is that companies need to look to outsourcing work in an effort to remain competitive in the global market. Entry level salary in these emerging destinations is around USD 3000 per annum and office rental USD 0.65 per sqft per month. Loaded costs per FTE could be as low as USD 8000, thus offering significant cost advantage. “In terms of human capital benefit, India has a highly literate and very driven young people. That’s going to be the biggest strength in future for Indian labour market.” Manpower Group President (Global Corporate and Government Affairs) David Arkless said.
Unlike their Western counterparts, they are willing to assist beyond their regular working hours for the projects they are involved in. This ensures that you have 24/7 support on your ongoing operation, empowering you to maximize accomplishments in a normal work day which would not have been possible if the work were done locally. Quickly determine your outsourcing ROI with our cost calculator and its impact on your overall budget.
One of the most essential steps of job outsourcing to India is to define a good job title and work profile. An employee may turn down an excellent job with a high pay grade if the title is not worthy of their qualifications or experience. Cognizant (US based, but now India’s second largest outsourcing provider) claimed the top spot, followed by Accenture and IBM.
- India offers a distinct combination of technological advancements and communication which motivated companies to outsource their business processes to India.
- One of the booming sectors in India today, the telecommunications sector is growing in size and potential.
- This ensures that Indian outsourcing firms have access to the right skill sets to consistently deliver quality work.
- With 2500 engineering colleges, 1400 polytechnics, and 200 schools of planning and architecture, India has strategically invested in growing its tech talent to become the world’s outsourcing hub.
Getting outsourcing services for digital marketing can help you strengthen your online presence and boost online visibility to increase sales. On a similar note, SEO outsourcing has gained raging popularity in recent years, allowing organizations to avoid hassles and save a lot of money in the process. Although easier communication, instant exchange of ideas, and a cultural fit might be some enticing reasons to stay put with your in-house team, it might cost you a lot.
Understanding profit margins in the BPO industry
As a result, they can abuse all the data they have on their work computer. Meanwhile, businesses are doing their best to address the cyber security issue. As stated, outsourcing companies in India provide a lot of advantages for any company’s offshoring. Many corporations in the USA like to outsource their call center service rather than create their team. However, the economic depression teaches them they are not doing it cost-effectively. They forwarded services to BPOs like data capture, document scanning, and accounting procedure.
This way, you’ll be able to understand the industry before leveraging it for your company. Over the years, they have catered to several small, medium, and large companies for their design, development, testing and launch as well. Love it or loathe it, outsourcing has become a permanent feature of the business toolkit.
The largest talent pool of professionals
People are concerned about outsourcing as a result of the outbreak of the pandemic. It had altered people’s perceptions of outsourcing and how they were hired earlier. However, as most firms scale and accelerate their digital transformation projects, IT providers in India are winning new business. As a result, the Indian IT outsourcing business will almost certainly witness an increase in revenue in the coming years. As it’s not a fairly technical task, you can hire call centers to attend to your customers’ needs. They’ll have all the dedicated staff and technology needed to provide round the clock support.
The following section offers a brief summary of a few of these alternate motivators. The many advantages to offshore outsourcing include domain expertise, outsourcing non-core functions, improved control over expenses, and round-the-clock service availability. However, the same study notes that in recent years companies have been finding it little more difficult to get the right talent. With the development boom in the country, job demand in other sectors as banking, engineering, and manufacturing has increased. Established IT outsourcing destinations that offer variety and high end skills such as Bangalore and Hyderabad are less expensive than similar destinations across the world.
Besides that, accent is also not an issue as they can do neutral accents when on the phone. Call centers in the Philippines value the importance of satisfaction rate while maintaining workload efficiency. If you want to outsource in India, you might want to look for some freelance virtual assistants. However, it is not advisable as it might compromise the security of your data. It is still better to look for a company that can cater to your needs for a few seats.
They excel in web and mobile app development, UI/UX design, product strategy, and team augmentation. Uplers embraces the latest technologies and frameworks to create robust, scalable, and user-friendly solutions that meet client requirements. Soft Suave is a leading IT outsourcing company that specializes in delivering top-notch software development and digital transformation solutions. With a customer-centric approach and a talented team of professionals, Soft Suave caters to the diverse needs of businesses across various industries.
In the 2013 financial year, the IT sector outsourced 43% of its work, the distribution industry outsourced 26%, while 12% of call centre agents and 38% of R&D workers found employment through outsourcing. These people, brought up as global citizens in a true digital environment will represent a key part of the workforce in the business service market. Use the information shared in the article to understand how to outsource software development to the country and its benefits. Your in-house and outsourced Indian team needs to communicate effectively to ensure transparency and collaboration.
Indian outsourcing can also take some of your time because there are a lot of offers to choose from. When you visit different freelancing sites, you will understand even better how competitive this market is. Many companies based in the United States outsource their web development from India and other overseas locations. If you are also thinking about outsourcing to India, you may be wondering about the pros and cons that come with outsourcing. This is perfectly normal, and we want to help you by addressing these concerns, and getting your answers. With 15,000+ articles, and 2,500+ firms, the platform covers all major outsourcing destinations, including the Philippines, India, Colombia, and others.
Another interesting aspect is also that more and more companies are cutting down on their staff. It is anticipated that in the next two or three years, more than 200,000 employees in India are going to lose their jobs. A recent report provided by NASSCOM showed that in 2020 alone, the country had over 4.36 million IT professionals. The pricing flexibility allows companies more freedom and creativity in managing their budget while saving costs.
Tata Consultancy Services
The outsourcer’s economy benefits from more affordable products and services which lower the cost to the consumer as well. The freelancer’s economy is boosted by the influx of job opportunities, giving the previously unemployed a new way of finding success. The outsourcing industry has grown within the last decade with over 2 million jobs being outsourced in 2013 alone. The numbers show that a large quantity of these opportunities were made available to freelancers in India and China.
India ranks 1st (out of 60 countries) on the 2021 Kearney Global Services Location Index with an overall score of 7.09. This index assesses the countries’ capacity to deliver services based on parameters like financial potential, talent availability, business environment, digital resonance, etc. With such talent potential, you are more likely to find a freelance Indian programmer or an IT outsourcing company offering quality software solutions for your needs. So instead of employing in-house developers, you can outsource software development tasks to India to save huge amounts of money. One of the primary reasons why companies outsource software development to India is to save money. In this article, we’ll explain the five benefits and two challenges of software outsourcing to India.
Benefits and Drawbacks of Outsourcing Supply Chain Operations
Cognizant’s strategic advantage was based on the company’s increased coverage in the increasingly important areas of healthcare and life sciences. Naturally, opportunities for saving money will always appeal to companies in their pursuit of better margins and better practices. The BPM outsourcing industry in India is a stable sector, enjoying sustained growth over Prepare Deferred Revenue Journal Entries the years, while also developing new capabilities and value added services. For instance, RCOM (Reliance Communications) recently signed up with Ericsson and Alcatel-Lucent, which are both leaders in the telecom market to outsource their network management operations. Similarly, Bharti Airtel partnered with IBM to outsource its IT services and management.
Employer’s Guide to Employee Benefits in Vietnam
This is a big issue that many outsourcing projects face with copyright and licensing. Outsourcing to India can also be difficult due to culture, time zone, and language differences. You will have to adjust to the social and cultural norms and practices of your targeted partner.