Monday, 8 August, 2022
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Why India is one of the best destinations for outsourcing

Cost-effective services, large pool of English-speaking skilled manpower and latest technology solutions are some of the reasons that make India the preferred outsourcing destination.

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Outsourcing is not a new word. This term has been known since the time India got acquainted with the word ‘call centres’ almost three decades ago when global software giants started outsourcing parts of their management processes to companies in other nations. There are multiple reasons for which companies outsource some part of their business process. Hexagon consulting studies shows that India is one of the preferred destinations for companies looking for outsourcing part or complete business process for various reasons. The reasons that make remote hiring from India preferable could be understood from the following points.

Cost-effective services

The cost of living in most of the developed countries is considerably high so hiring local professionals incurs a higher cost, whereas hiring an Indian professional at a remote location, preferably their own country, is way more cost-effective for these companies. The low cost of the remotely hired professional service is one of the key benefits for companies from the countries like the USA. One more positive point is despite the low cost of services quality standards are maintained at par with global requirements.

A large pool of English-speaking skilled manpower

India is home to possibly the largest skilled talent pool. Every year almost 1.5 million engineering graduates pass out from various institutes which include premier institutes like IITs and NITs. This gives companies a wide range of choices to make from. These professionals are as skilled as any graduate from developed countries This way the firms in the US get the best talent from outsourcing companies in India without compromising on geographical limitations. A proper hiring process within a large pool of talented professionals guarantees the formation of an excellent team, that is why outsourcing to India is preferred.

Latest technology solutions

Indian companies providing remote services prefer providing state-of-the-art infrastructural and technological support to the clients outsourcing to them. The futuristic training for professionals hired for remote clients is one of the most important tasks every remote hiring company is adhering to. The result is that clients get the best quality of professionals hired for them

State-of-the-art infrastructure

India is home to a few world-class cities offering state-of-the-art infrastructure and global connectivity. Cities like Delhi, Gurgaon, Bangalore, Pune, Mumbai, and Hyderabad, are known to have dedicated and best corporate infrastructure for world-class organisations. There are many other two-tier cities like Bhubaneswar, Jaipur, Indore, etc, on the fast pace of similar developments, which are lucrative options for their great infrastructure at a lesser cost. Large office spaces with the best amenities; accommodating a big team of employees, are sprawled in areas specifically allocated for business purposes.

Better communication and client support

With the advent of modern communication technology apps like Zoom, Hangouts, Team, and Skype, communication has been as smooth as direct communication between two individuals or teams sitting at the same location. The business world never denied the usability of these apps earlier, but during the global pandemic, these apps came as big saviours. During this period almost 100% of the employees were working from remote locations, be it work from home or work from any other part of the world.

Concentrating on core strengths and deliverables

By outsourcing various processes, be it HR or marketing and sales or client-support, companies can focus on their core strength and deliverables related to it, be it software development, FMCG production, supply chain management or banking and finance. On the other hand, outsourced services are also managed by the service providers who have expertise in the respective field, resulting in overall increased efficiency. For example, if the HR process is outsourced to an organisation that has expertise in it, the firm takes care of the tedious task of recruiting, training payroll management, grievance redressal with much more efficiency in way lesser cost.

Who can outsource?

It is a general myth that only large corporate houses or software giants need outsourcing. Outsourcing is viable for any size and type of firm. It is not only about cost reduction but also efficiency enhancement. The part of a business process that is not the core strength, if outsourced to the experienced service provider only result in better and chaos-free management. For example, a business in sales and promotion can outsource the HR process and a financial organisation can outsource data management service, or an e-commerce service provider can outsource supply-chain management.

(ThePrint ValueAd Initiative content is a paid-for, sponsored article. Journalists of ThePrint are not involved in reporting or writing it.)

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