Business leaders of many western companies have to solve one complex problem – Whether to outsource or not. However when they decide the former, the most preferred location is India. Outsourcing of IT and ITES services have been in India for over 2 decades now and are poised to grow at a tremendous growth rate of 25 to 30% each year. Even though many other destinations such as China, Philippines, Mexico, and Ireland etc. have emerged as major competitors, India still continues to maintain its spot. In this article I will cover the top reasons which make India a clear winner in this space.
Without a doubt, this is the numerous reason for outsourcing to India. Companies can significantly save their operating cost by taking advantage of the income gap between developed and developing economies.
The youngest nation with the average being 26 years, India is the biggest demography of talented and skilled human capital. The numbers keep soaring as roughly 3 million graduates add to the workforce each year. India has more English speakers than UK and USA combined. But many western companies choose not just for quantity but for quality of talent.
As touched briefly, the main reason that lets companies to renew long term contracts with India is the quality of service. Many big and small corporations originally chose India to save costs but have stayed only for the speed of execution and the high quality standards.
India has massively developed its communication infrastructure. Today we have state-of-the-art telecom, cellular networks and even high speed bandwidth via satellite connectivity, fiber optic networks, submarine cables etc. Clients are offered best in class software solutions customized as per their needs.
Every industry needs proper nurturing and a favorable environment to facilitate its growth. Luckily Indian government has regarded IT/ITES outsourcing as one of the top 5 priority industries in India and has always extended its support by making business friendly policies.
The 12 hour time difference between Indian and USA time zones also goes in the favor of the Outsourcing industry. Indian companies greatly leverage this lead time and cam complete the work easier than expected, thus increasing productivity.
Companies such as PixelCrayons are making deep impact in this space. Located in Delhi, the web development company has grown 250 strong and services over 4000 clients from more than 38 countries across the globe. It offers services in the area of web development, eCommerce solutions, documents management and digital marketing to name a few.
There are multiple reasons that contribute to the success of Indian outsourcing industry. Over the years it has gained confidence of many fortune 500 companies that have delegated work to India for all the advantages we just discussed. I am bullish on the Indian Outsourcing story which is here to stay for sure.