Why India is Globally The First Choice For Outsourcing Software Development Servicesby Aarushi Sharma Human Resource Executive
If a recently released report is to be believed, about 80% of USA and European companies trust Indian companies for their outsourcing services. National Association of Software & Service Companies (NASSCOM) discovered that over half of the total Fortune 500 companies prefer India for outsourcing software development. The stats are amazing, there must be something outstanding about Indian outsourcing practice that hooks developed countries to Indian expertise.
However, in the last decade, a lot of competition has come from all corners of the world such as Ireland, Mexico, China, and the Philippines, but Indian outsourcing still holds preference and has done best to outwit everyone. India is also a front-runner for outsourcing services race owing to its dynamic working model, which offers a perfect blend of offshore, onshore and hybrid, serving all sorts of client requirements.
How outsourcing tech jobs became a pet for developed nations?
At the turn of 21st century, there was a massive technological influx at application level in every industry, resulting in immense pressure on companies to bring innovations and new ideas in their work which made it complex for them to survive in the cut-throat global market. Therefore, they looked for an alternative to reduce their pressure while not compromising the quality of their services, hence outsourcing practice became popular.
Reasons Why Business Tycoons Prefer Outsourcing-
- The Emergence of new and innovative technologies
- Costly human resource
- Time consuming operations
- High competition
- Receding operational costs
- Sharing risks equally among partners
Why India has Become the Ideal Outsourcing Destination?
- Largest Pool of Technical and Professional Talent
India is nearly invincible when it comes to its vast pool of expert professionals in the field of technology. Every year, the country adds over 350 million graduates while booming up the human resource sector. It is surprising to know that India has the largest population of English-speaking people, even larger than the UK and USA combined. Tom Hyde, STI Upstream business manager, Shell, reveals why they always choose India for outsourcing by citing, “The attraction of India for us was not only numbers but, more importantly, the quality of the talent. We’ve taken on people who are innovative and creative and can really contribute to the business.”
- Flexible Pricing Options
As compared to others, India has the most flexible pricing options along with the best quality of work. It has the highest ISO marked certified companies in the world, depicting the fact that quality is never negotiated. Pricing has been the top reason behind the success of IT outsourcing companies for decades as the companies can reap larger profits while investing less.
- Quality at its Top with greater time-to-market
India outwits everyone when it comes to deliver higher quality work. At one of the recent Annual Offshore Outsourcing Conferences, The National Outsourcing Association (NOA) said that “Cost reduction was only part for the reason that companies were considering offshore outsourcing, there were benefits to be had in time-to-market and quality, leading to an adage that companies initially chose India to save costs but stayed for the speed and quality!”
- The Best Technology and Infrastructure- ahead of its time for developing nations
India offers accentuated services for sectors like telecom, ISP, and cellular network in almost every city and town resulting in smooth and transparent communication with the clients. This was made possible using submarine cables, satellite connectivity, and fiber optic networks. From business process re-engineering, e-commerce, legacy system maintenance, to system migration, India has become the largest hub for the software technology and other IT outsourcing services.
- Better time-zone management
India outsourcing companies are offering the fastest time-to-market globally due to time zone differences. India and the USA has 12-hour time difference that benefits the clients to receive the work earlier than the dead-line. For companies who are seeking outsource service-related options including Help-desk services and 24X7 Customer Support, India becomes their ideal destination.
- Stable government with attractive IT policies
The stable pro-IT government and its flexible economic policies, increasing GDP growth, power, telecom, industrial parks, and taxation have been a ladder in developing the infrastructure and communication systems rapidly. It is amazing to know that IT is regarded as one of the top 5 prioritized industries in India. Meanwhile, to boom up the productivity of IT outsourcing companies, the government has set up various tax-related benefits like Information Technology Act, 2000, which states leverages for electronic contract and e-filing of documents and strict bars on cybercrime.
For ages, India has been benefiting western countries in several entrepreneurial endeavors and in the recent era, outsourcing for technology has been one such venture..
Created on Oct 14th 2019 08:35. Viewed 130 times.