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Offshore Outsourcing > Outsourcing to India
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Outsourcing to India- Advantage
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Are you in the trap of anxiety? Are cost related issues squeezing your brain? Do you think your employees are unhappy with the escalating work load? Are you convinced that your frail shoulders are no more going to carry the unreasonable burden of work upon you? If yes, then join the rat race by procrastinating these feeble looking issues, else, outsource. Outsourcing certainly is a befitting answer to your problem.
The endless benefits of Outsourcing are evident, as the whole world is moving towards it. What are you waiting for?
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Why Outsource to India ?
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‘Growth is only starting, but the country’s brainpower is already re- shaping corporate America.’
Businessweek online by Manjeetkriplani and Pete Engardio with Steve Hamm in New York |
The above statement says it all. India is certainly a force to reckon with when it comes to Outsourcing. India is and will always remain the hot spot for offshore outsourcing. The abundant skilled manpower has made India a target destination for multinationals to back end their operations in India . India ranks high in areas such as qualifications, capabilities, quality of work, linguistic capabilities and work ethics, and thus is ahead of competitors such as China , Philippines , Ireland , Australia , Canada etc. Indian companies have unique capabilities and infrastructure to realize measure and monitor quality targets.
Leading software consultancies such as McKinsey and Forrester have declared that India is now the global hub for software development and software enabled services. The level of excellence India has attained in this field comes from uphill efforts and hard work. Combined with the advantages of the world's second largest pool of English speaking scientific and engineering talent, lower costs of living and strong Government backing for the software sector, infrastructure etc, it's not surprising that Intelebiz can pass on the outsourcing benefits while still remaining profitable.
Beside this, reasons asserting towards outsourcing to India are technological agility, quality, flexibility, cost control, time-to-market and competitive advantage. India is an ultimate destination for organizations.
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Advantages of outsourcing to India are mentioned below
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Earned global confidence and recognition |
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India has earned a dubious distinction for being the first choice of many international companies for software outsourcing. Nearly 82% of the US companies ranked India as their first choice for software outsourcing. Bill Clinton applauds India 's brainpower: says Indian-Americans run more than 750 companies in America 's Silicon Valley . "You liberated your markets and now you have one of the 10 fastest growing economies in the world," said President Clinton.
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India ’s greatest asset- ‘Quality man power’ |
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India outmaneuvers the world when it comes to manpower, both in quantity as well as quality. Indians are known for there tenacity, adjustability, & immense talent. In several cases companies outsource to India in order to get specialized talent in specific areas.
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Supportive Government Policies |
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IT is one of the top five priorities of Government of India. A separate Ministry of Information Technology was set up to expedite swift approval and implementation of IT projects and to streamline the regulatory process. Government of India has taken several liberalization initiatives to support the growth of outsourcing sector. Government is trying to pull a lot of FDI (foreign direct investment) into the country. The motive is to make technology reach the grass root levels.
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Multiple Advantages |
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Leading companies worldwide realize that to maintain stay ahead, they need to reduce costs, provide the best quality, use the latest high-tech skills, and be reliable and innovative. Outsourcing to India entails multiple benefits for the clients- like world-class system, resources and quality. Its all matter of trust- as out of 23 software companies in the world that have achieved the prestigious SEI-CMM Level 5, 15 of them are Indian. India will soon have the highest number of ISO-9000 software companies in the world, according to Nasscom.
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State-of-the-art technologies for total solutions |
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India rules the roost with various offshore assignments in its kitty. These offshore solutions have moved up the value chain - from data entry to large and complex turnkey projects.
Applications include:
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E-Commerce |
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Business Process Re-engineering |
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System Migration |
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Maintaining Legacy Systems |
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System Integration |
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Software Technology Parks |
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Software Technology Parks of India offer world-class infrastructure and various incentives and concessions to encourage foreign investment and promote software development in India e.g. 100% Foreign equity is permitted and approved under the Automatic Route delegated powers to The Director STPI, tax holiday until 2010, etc.
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Stable Government and Economy |
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India is a democracy with five year term governance. This stability sets the pace of growth with booming economy. Indian service sector contributes a massive 51 per cent to India 's GDP. Within this category, the most promising is computer software export, which grew at an amazing rate of 40-50 per cent every year during the 1990s.With excellent investment potential: India ranked third in Asia, just after Japan and China, in terms of investment potential for the next 10-year period in a study by the Export-Import bank of Japan.
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Comparing India with other BPO Destinations |
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| BPO |
India |
China |
Russia |
Canada |
Ireland |
Government Support |
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Labor Pool |
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Infrastructure |
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Educational System |
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Cost Advantage |
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Quality |
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Cultural Compatibility |
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Time/distance Advantage |
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English Proficiency |
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High Medium Low
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Source : neoIT |
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India - SWOT Analysis |
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Strengths
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Weaknesses (Challenges)
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- Solid history in software development.
- English proficiency
- Full-fledged Government Support
- Cost advantage
- Strong tertiary education
- Process quality focus
- Skilled workforce
- Expertise in new technologies
- Entrepreneurship
- Reasonable technical innovations
- Reverse brain drain
- Existing long term relationships
- Low cost of Labor
- Time advantage
- Creation of global brands
- BPO & Call center offerings
- Expansion of existing relationships
- Chinese domestic & export market
- Leverage relationships in West to access
APAC/Middle East markets
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- Positioning & Brand management
- Medium Infrastructure
- Cultural differences
- Sales & marketing
- Leverage expertise for higher-value education
- Business process experience
- Distance from US
- Legal system
- Poor globalization skills
- Internal competition for resources
- Regional geopolitical uncertainty
- Rising labor costs
- Competition from other countries
- Sometimes blinding nationalism
- Government blocking reform/deals
- Corruption/piracy/trust
- Political & religious instability war |
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