Why are the foreign companies outsourcing certain part of their business in countries like India
Answers
India is a developing country
both get equal profit
Why do companies prefer to outsource to India? Is it because of high quality work, a favorable time zone, outsourcing-friendly policies or low labor cost? The answer is all of the above. Over the years, India has evolved into being the world’s most preferred outsourcing destination for a host of IT and ITES services across domains. India is one of the few outsourcing locations that offer several advantages that enable organizations to work efficiently, cut down on cost and improve quality all at once.
1. High Quality Services
When it comes to quality, there is no compromise from India. Indian service providers use the very latest in technology, software and infrastructure to provide services that are on par with international quality standards. Research surveys have even proved that Indian professionals are technically superior when compared with IT professionals from other countries. Global businesses love to outsource to India as they can get access to a highly educated workforce that is experienced, skilled, proficient in English, computer-literate and technically talented.
2. Unique time zone advantage
As any business will tell you, time is equal to money. If a company can get access to 24/7 services, it can be sure to complete work much ahead of deadlines and take on more projects. Customers too are happy when they can avail services or get their queries answered on a 24/7 basis. Now this has become a reality with outsourcing. Since the Indian time zone is 5.5 hours ahead of GMT and 10.5 hours ahead of the EST, companies can take on more work and keep their customers happy by outsourcing to India.
3. Stable government
When compared with other outsourcing locations, India has a stable government that has been firmly built over 60 years of democracy. The IT sector has always been a top priority for India’s government and India has ensured that the outsourcing process is seamless by setting up a ministry of information technology. This IT ministry streamlines regulatory processes and quickly approves the implementation of IT projects. Over the past 10 years, India has been able to build several hi-tech IT parks with cutting-edge technology and best-of-breed infrastructure. The government in India has even permitted 100% foreign equity.
4. Low cost services
The cost of labor in India is much lower when compared to other outsourcing locations. In fact, low cost services are one of the primary advantages that you can leverage by outsourcing to India. Though the cost of labor is low, there is no compromise on the level of quality. India has the highest number of ISO-9000 software companies and several Indian service providers have even achieved the prestigious SEI-CMM level.
5. Preferred outsourcing location
Research surveys have proved time and again that India is the most preferred outsourcing location among global companies. In the United States alone, more than 90% have ranked India as their first choice for outsourcing IT and software services. Over the years, the United States, Canada, Europe and the United Kingdom have recognized the country of India as an outsourcing superpower.