India Outsourcing: Growth and Trends
Are you familiar with outsourcing offshore? Are you aware of the growing trend of outsourcing business in India? To know more about India outsourcing, read the article below.
What is outsourcing? It is the practice of seeking manpower resources outside the company or organization.
It is when companies send some job functions offshore instead of handling them inside the firm.
Overview of India Outsourcing Market Companies started to outsource their tasks and services during the advancement of technology in early 1990s.
During this period, business enterprises started to hire business process outsourcing (BPO) firms, third-party contractors to handle some of their functions.
It is in this period that India outsourcing business emerged and started to boom.
It is when the first wave of outsourcing business started in India because it experienced technological progress and it possessed needed infrastructure to handle the initial outsourcing demand.
During this period, India outsourcing market has grown tremendously and has become the hub for outsourcing jobs.
It becomes the preferred outsourcing destination for companies to do their payroll, accounting, commodity trading, warehouse receipts, call center services and many more.
At present, India has more than 400 companies operating in the business process outsourcing (BPO) sector, including third-party service providers and captive units.
Reasons why foreign companies outsource to India? • Cost efficient services - It has large, trained, educated and technically skilled manpower which offer cheap costs without compromising quality of work.
Multinational companies prefer to outsource their work to India because it enables them to save on operating costs while increasing their efficiency, productivity and quality.
Unlike western countries, India has large pool of highly skilled technical professionals.
• High-quality services - India outsourcing companies provide global customers with high-quality outsourcing solutions because they use the latest technology, software and infrastructure.
It has highly educated, talented, experienced, computer literate and technically skilled English-speaking manpower.
• Stable government - India has stable government and has experienced more than 60 years of democracy.
The Indian government prioritizes the improvement of its information technology (IT) sector and approves the IT act 2000, considered as the most excellent investment potential in the country.
The Ministry of Information Technology approves the implementation of the IT projects and streamlines its regulatory processes.
The government also gives complete support to IT and information technology enabled services (ITES) industry, permits 100% foreign equity and supports the construction of high-tech IT parks.
• Time zone advantages - It has an advantageous time zone for companies located in Great Britain and the United States.
This factor is important for companies outsourcing to India because they want to provide their customers with 24x7x365 days helpdesk services and customer support.
• Indian advantage - Companies outsourced to India not only because of its cost efficient services, but also of its easy access to skilled and professional outsourcing solutions with fast lead time.
It has the highest number of ISO-9000 software organizations and more than 20 software companies which achieved the renowned Software Engineering Institute-Capability Maturity Model (SEI-CMM) level.
• Preferred choice of global companies - It is the preferred choice among global organizations and more than 80% of American companies ranked India as their first choice with it comes to information technology and outsourcing software services.
The United States also recognizes India as an outsourcing superpower.
• Fast growing economy - Majority of these companies outsource to India not only to get affordable and quality services but also to give their organizations competitive advantage.
What is outsourcing? It is the practice of seeking manpower resources outside the company or organization.
It is when companies send some job functions offshore instead of handling them inside the firm.
Overview of India Outsourcing Market Companies started to outsource their tasks and services during the advancement of technology in early 1990s.
During this period, business enterprises started to hire business process outsourcing (BPO) firms, third-party contractors to handle some of their functions.
It is in this period that India outsourcing business emerged and started to boom.
It is when the first wave of outsourcing business started in India because it experienced technological progress and it possessed needed infrastructure to handle the initial outsourcing demand.
During this period, India outsourcing market has grown tremendously and has become the hub for outsourcing jobs.
It becomes the preferred outsourcing destination for companies to do their payroll, accounting, commodity trading, warehouse receipts, call center services and many more.
At present, India has more than 400 companies operating in the business process outsourcing (BPO) sector, including third-party service providers and captive units.
Reasons why foreign companies outsource to India? • Cost efficient services - It has large, trained, educated and technically skilled manpower which offer cheap costs without compromising quality of work.
Multinational companies prefer to outsource their work to India because it enables them to save on operating costs while increasing their efficiency, productivity and quality.
Unlike western countries, India has large pool of highly skilled technical professionals.
• High-quality services - India outsourcing companies provide global customers with high-quality outsourcing solutions because they use the latest technology, software and infrastructure.
It has highly educated, talented, experienced, computer literate and technically skilled English-speaking manpower.
• Stable government - India has stable government and has experienced more than 60 years of democracy.
The Indian government prioritizes the improvement of its information technology (IT) sector and approves the IT act 2000, considered as the most excellent investment potential in the country.
The Ministry of Information Technology approves the implementation of the IT projects and streamlines its regulatory processes.
The government also gives complete support to IT and information technology enabled services (ITES) industry, permits 100% foreign equity and supports the construction of high-tech IT parks.
• Time zone advantages - It has an advantageous time zone for companies located in Great Britain and the United States.
This factor is important for companies outsourcing to India because they want to provide their customers with 24x7x365 days helpdesk services and customer support.
• Indian advantage - Companies outsourced to India not only because of its cost efficient services, but also of its easy access to skilled and professional outsourcing solutions with fast lead time.
It has the highest number of ISO-9000 software organizations and more than 20 software companies which achieved the renowned Software Engineering Institute-Capability Maturity Model (SEI-CMM) level.
• Preferred choice of global companies - It is the preferred choice among global organizations and more than 80% of American companies ranked India as their first choice with it comes to information technology and outsourcing software services.
The United States also recognizes India as an outsourcing superpower.
• Fast growing economy - Majority of these companies outsource to India not only to get affordable and quality services but also to give their organizations competitive advantage.
