7 Advantages Of Outsourcing To India Your Boss Wants To Know 

Over the years, businesses based in countries like the US, the UK, and Australia have been outsourcing their work to Asian countries like India and the Philippines.

India by far has been the preferred destination.

Here are some statistics on outsourcing

• Hexagon Consulting suggests India’s outsourcing business today stands at approximately $US 118 billion, clearly proving India’s dominance in the outsourcing landscape.
• According to Tholos's 2016 Top 100 Outsourcing Destinations, Bangalore has the highest share of outsourcing business in India. Mumbai, Pune, Hyderabad, and Delhi are not far behind either. They are on the list of top 10 outsourcing destinations as well.

As there are different types of outsourcing, whether it’s finance and accounting, IT, or ITES services; India is the most preferred destination for outsourcing business on account of many reasons.

Here is the list of a few companies that outsource their back office services to India

Many companies send their back office work to India. Below are a few of them.

• IBM
  
• Vodafone
• Telstra
• BestBuy
  
  

Advantages of Outsourcing To India

1. Lower Costs & Higher Benefits 

Money is at the core of all reasons for outsourcing. India has proven to be the most cost-effective. Labor costs in countries such as the US, UK, Australia, Canada, and Dubai are enormous as compared to India. Lower costs directly have an impact and increase the ROI.

Instead of hiring in-house workers, agencies prefer to outsource their business to Indian agencies, which provide them with a dedicated workforce that would work exactly like in-house resources will work for the agencies abroad. It offers not only flexibility but also a reduction in capital expenditure, infrastructure, and maintenance costs by a considerable margin.

2. Communication

Seamless communication is another reason that these countries prefer India more than any other country. Effective communication is the most vital factor for better execution of plans and strategies. Indians are known to speak English better than their Chinese or Filipino counterparts.

3. Access To Skilled Workforce

Outsourcing business to India facilitates access to skilled resources with plenty of experience. With the highest number of skilled resources in sectors such as IT, BPO, and finance. India also boasts the maximum experience in handling critical projects with utmost ease. The availability of a skilled workforce at reasonable prices is the icing on the cake for agencies based in the US, UK, Australia, Canada, and Dubai, among others.

4. Advanced Infrastructure & Latest Technology

Indian agencies heavily focus on the deployment of the latest of technologies and infrastructure. Besides, training the workforce on the latest technologies is at the core of their strategy. 

They conduct training programs on a regular basis to ensure their employees are at the top of their game all the time. This helps Indian firms cater to the demanding needs of overseas clients and execute critical projects in a seamless manner.

5. E-commerce Solutions

E-commerce is one of the areas, in which India has gained measurable dominance in the past few years. Amazon, the pioneer of eCommerce, chose to set up a software development center in Indian cities such as Pune, Bangalore, Hyderabad, & Chennai.

E-commerce companies have over the years focused on making themselves more competitive than ever by outsourcing their customer service. That’s the reason, they have turned to technology for maximum output. Integration of customer support and logistics vouch for that.

6. India's Outsourcing-Friendly Policies

Outsourcing businesses is one of the main sources of foreign income for the Indian economy. Hence, India’s outsourcing policies are flexible, encouraging overseas agencies to outsource their businesses to India in a hassle-free manner.

From $US 50 billion in 2010 to US 118 billion in 2016, India’s growth in outsourcing is immense. The statistics clearly suggest that while India’s policies are considered favorable for outsourcing, the availability of skilled resources at lower costs, on the other hand, makes India the best choice for outsourcing.

7. Productivity & Better Customer Support :

Outsourcing increases productivity and customer support. Both of these factors are indispensable to efficiency and 100% customer satisfaction, which also results in recurring business.

Round-the-clock customer support, despite time zone differences, and great command of English also helped India climb up the ladder in a short period, outdoing all other countries.

Regardless of the numerous advantages and benefits of outsourcing, the drawbacks of outsourcing additionally abound. Just as outsourcing might end up being good for businesses, the management of a company should weigh the benefits as well as the drawbacks of outsourcing before actually choosing the process.