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The Many Reasons Why the Biggest Names in Business Outsource Work to India

by Lee Bruce Digital Marketer

Outsourcing has become an intrinsic part of the way business is conducted today the world over. Everyone in the business world, regardless of their personal feelings, knows two things:

a. The benefits of outsourcing are far too numerous to ignore; and

b. India is, far and away, the best outsourcing destination in the world

There are many reasons why India has been, and continues to be, the favorite outsourcing destination for 80 percent of the 500 largest corporations in the world. Big names like GE and Amex started outsourcing back-office work to India in the 1980s. Thirty-odd years later, the outsourcing industry in India is a USD 150 billion industry, and some of the biggest names in the business world – IBM, Vodafone, Amazon, and Best Buy – all outsource work to India and reap the many benefits that come with it.

Here are 7 major reasons why businesses, both big and small, continue to find India the most viable and the most lucrative outsourcing destination in the world:


1. Cost-saving: Outsourcing started out as a cost-saving measure, and thirty years later, the lower costs of outsourcing to India still remains the most compelling reason behind more and more businesses choosing to outsource work to India. The savings that a company can enjoy while outsourcing to India are many-layered: 

a. Lower or no expenditure on infrastructure: Outsourcing to India means that a company does not have to spend on infrastructure, office space, furniture, electricity etc.

b. Lower wages: Companies also save a lot of money while using the outsourcing services available in India because skilled professionals in India work at lower wages than their Western counterparts.

c. No expenditure on warehousing and shipping: Companies that outsource warehousing and logistics also save on storage, inventory, and transport.


2. English-speaking employees: For any business to run smoothly, communication is the key. The fact that India boasts of the second largest English-speaking population in the world is an unmatched triumph for outsourcing companies in India


3. Expertise: Outsourcing to India comes with the added benefit of expertise. Not only are outsourcing companies in India known for hiring the most experienced and technically skilled professionals, they have been in business for so long that they bring to the table their unmatched expertise when it comes to conducting the business of outsourcing.


4. Government policies: Unlike China, the Indian government’s policies have always favored the outsourcing industry. Outsourcing to India has also worked so well for so long because its government is committed to bringing foreign business into the country so that both parties may reap the benefit of globalization.


5. Infrastructure: The Indian government’s emphasis on the outsourcing industry, especially the IT outsourcing industry, has never been just theoretical. In its bid to attract more foreign business, the Indian government is now encouraging the establishment of high-tech parks all around the country, particularly in major IT centers like Bangalore, Pune, and Hyderabad. 


6. E-commerce: The latest addition to the many benefits of outsourcing to India is the fact that outsourcing companies in India have cracked the e-commerce code. Indian companies realized very early that e-commerce was going to be the way forward for future businesses and they started working toward gaining dominance in this field.


7. Time-zone advantage: India’s geographical location gives it a time-zone advantage that all businesses want to make use of. A lot of global businesses outsource work to India so that their operations can carry on 24 hours a day. 24-hour operation means increased productivity, more work in less time, and, by extension, a faster turnaround time for companies. Any savvy businessman can perceive just how lucrative outsourcing to India can be. 



About Lee Bruce Advanced   Digital Marketer

48 connections, 2 recommendations, 129 honor points.
Joined APSense since, September 18th, 2017, From Rockland, United States.

Created on Jan 24th 2018 08:11. Viewed 226 times.

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