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Why Business Outsourcing in India Continues to Beat All Its Competitors

by Virtual Employee Digital Marketer

Over the past 30-odd years, business outsourcing in India has become a force to be reckoned with. Outsourcing companies in India have evolved as per the changing needs of clients and have consistently proved that they are indeed a client’s best choice when it comes to deciding which country to outsource to.

India has consistently topped at Kearney’s Global Services Location Index (GSLI) of outsourcing destinations in the world. Manufacturing giant China has been trailing behind India since 2014. Knowing China, this must be a hard pill for it to swallow! However, India’s stellar reputation as an outsourcing services provider continues to drive more and more global outsourcing business its way.

In fact, business outsourcing to India has become such a well-oiled thing that every year, outsourcing companies in India are widening their lead over other outsourcing destinations. Within the last year alone, India increased its lead over China from 0.47 to 0.76 (according to Kearney’s 2017 GSLI).

Here is a look at the many reasons why countries, both big and small, have tried and failed to beat India at the outsourcing game:


  1. Cost-Saving: Let’s face it. Saving money is the single most important reason why companies outsource their work. The fact that by outsourcing to India, they can get the job done at as low as a tenth of what it would cost them domestically is why companies outsource to India. World Bank’s data shows that a job that an Indian developer will do for USD 1,500 will cost USD 60,000 in Australia, USD 55,000 in the US, and about USD 45,000 in the UK. Even if a company considers other outsourcing destinations, India’s 1500 dollars is still the most reasonable price they will find as compared to USD 8,000 in China and USD 3,600 in the Philippines.

  2. Skilled Workforce: With close to 5 million students graduating from Indian universities every year, India is a treasure trove of educated, English-speaking, and industry-ready professionals. No other outsourcing country can hold a candle to India’s sheer strength in numbers when it comes to having a technically skilled workforce.

  3. Government Policies: The Indian government has formulated special policies and instituted acts of law that give a boost to outsourcing services in India. Even the Indian education system, which is conducted in (British) English medium, is geared toward making future professionals as technologically savvy as possible. China, India’s closest competitor (in numbers only), has perhaps been held back by its government’s insistence upon secrecy and its suspicion of the World Wide Web. As any country hoping to procure foreign business should know, political stability and favorable government policies go a long way toward bringing in international business. India clearly understands this fact and that is one of the many reasons why it is the reigning champion in the business of outsourcing.

  4. Lower Investments: Given that skilled professionals in India cost less than half their Western counterparts, it stands to reason that everything else – like infrastructure, office space, furniture, electricity, warehousing and transport facilities etc. – all cost much less in India than they would anywhere else. This is another reason why more and more companies continue to use outsourcing services from India – because the savings they make are compounded many times over due to the lower costs of operating from India.

  5. Time-zone Advantage: One can hardly overstate the time-zone advantage that outsourcing to India offers to a company. Companies that have been savvy enough to enjoy the benefits of business outsourcing to India have all managed to turn their ventures into a full-time, round-the-clock operation. 24-hour operations bring with them many things such as increased productivity, better customer service, shorter time to market, and lower costs of production.


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About Virtual Employee Advanced   Digital Marketer

48 connections, 2 recommendations, 130 honor points.
Joined APSense since, September 18th, 2017, From Rockland, United States.

Created on Jan 4th 2018 06:57. Viewed 611 times.

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