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4 Irrefutable Reasons Why Companies Prefer Outsourcing to India

  • By admin
  • November 15, 2021

For the past few decades, outsourcing has been one of the most advantageous corporate decisions around the world. It has grown in popularity as there are many pros of outsourcing. Outsourcing provides firms with a competent workforce and timely deliveries in addition to decreased costs. It leads to a significant boost in efficiency and return on investment.

Why do companies outsource their work to India? Is it solely for the sake of cost-cutting, work quality, or time-zone advantages? The answer is yes when it comes to Outsource to India. India has come a long way to reach the peak of outsourcing.

According to a current report quoted by experts, India is the top outsourcing destination for around 85 percent of European and US outsourcing organizations. It will be an interesting presage of how outsourcing patterns would emerge when the geopolitical and economic parity between developed and developing countries shifts.

Here are a few reasons why corporations choose to Outsource to India:

  • Heightened competition.
  • New technology’s emergence.
  • Limitations on time.
  • lowering operating costs.
  • Labor is cost-effective.
  • Risk is shared equally with a partner firm.

There are many advantages of outsourcing to India and today we will discuss them.

Easier Communication:

According to a poll, around 350 million people in India speak English, which is one of the major benefits of outsourcing. Furthermore, India has a higher proportion of English speakers than the United States and the United Kingdom. This is a common consequence of British colonial dominance in India, which resulted in English being taught in schools from the very beginning. Furthermore, people are readily available on Skype and Chat for face-to-face connection at their leisure.

Lower Labor Cost:

Although labor costs in India are lower than in other outsourcing regions, this does not imply that the work is of poor quality. Because India has the biggest number of ISO certified companies, the quality is unaffected which is another advantage of outsourcing. In the United States, for example, hiring an in-house developer can cost over $80 per hour, whereas outsourcing to India can cost around $15-$20 per hour. As a result, outsourcing can be considered one of the most cost-effective choices for firms in industrialized countries.

Quality Services:

India’s cost-cutting aspect, as well as the quality service it provides, has propelled it to the forefront of the outsourcing business, among others. Cost reduction is a very major reason for which companies are considering offshore outsourcing. There are other benefits to be had in time-to-market and quality, leading the businesses to growth and improvement.

24×7 Support:

Due to time zone differences, businesses that Outsource to India are able to receive the shortest and highest quality time-to-market. Due to the 12-hour time difference between India and the United States, businesses have numerous opportunities to complete work ahead of schedule, resulting in increased efficiency, production, and time to work on other critical accountabilities. As a result, India is able to service numerous countries 24 hours a day, seven days a week.

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Also Read: How Knowledge Process Outsourcing Can Improve Processes in Healthcare?